The poor pay income tax, too, and via online–report
Digital tax platform Taxumo reported that low-income earners remain the primary users of its online tax services—a trend the company views as a sign of growing access to the formal economy and increasing tax compliance among the poor.
In its “State of Online Taxation 2025” report, Taxumo said the poor accounted for the biggest share of online income tax taxpayers in 2025 at 30 percent based on transactions processed on its platform. These are people with per capita income of less than P13,873—the official poverty threshold set by the Philippine Statistics Authority.
While the latest figure was slightly below the 30.8-percent share recorded in 2024, Taxumo said it still reflected the poor’s ability—and willingness—to use digital tax services to comply with government requirements and contribute to public funds. This, the company noted, “points to a more complex financial situation than what their reported income might indicate.”
Meanwhile, the share of the rich to total online tax filers was only at 1.9 percent this year, from 1.6 percent in 2024.
“Taxpayers aren’t just the wealthy,” Taxumo said.
“That individuals with modest incomes are still choosing to pay taxes suggests that access to the formal economy is becoming more widespread. Many want to be tax-compliant to qualify for bank loans, secure permits, or legitimize their businesses,” it added.
Surge in collections
Latest government data showed the Bureau of Internal Revenue saw its collections surge by 14.11 percent year-on-year to P1.55 trillion in the first half of 2025, falling short of its P1.58-trillion target by 1.52 percent. The Bureau of the Treasury said this performance was “driven mainly by increases in corporate income tax, value-added tax and personal income tax.”
Taxumo said it saw a 49.04 percent year-on-year increase in income taxes that were filed online in 2025, beating the 2024 growth rate of 33.87 percent. Many of these are first-time digital taxpayers or previously informal earners.
It added that most online tax activity continued to come from those in the middle and lower income levels.
By type of workers, Taxumo also said more freelancers, online sellers and micro-entrepreneurs were embracing formal tax compliance as part of building sustainable digital livelihoods.
