In its “State of Online Taxation 2025” report, digital tax platform Taxumo reported that the poor accounted for the biggest share of online taxpayers in 2025, at 30 percent, based on transactions processed on its platform. These are people with a per capita income of less than P13,873 – the official poverty threshold set by the Philippine Statistics Authority.
The firm said it reflected the poor’s ability, and willingness, to use digital tax services to comply with government requirements and contribute to public funds. It also noted that it “points to a more complex financial situation than what their reported income might indicate.”
Meanwhile, the share of rich taxpayers using their online system to file tax was only 1.9 percent this year, from 1.6 percent in 2024.
“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.
Latest government data showed the Bureau of Internal Revenue saw its collections surge by 13.111 percent year-on-year to P1.55 trillion in the first half of 2025, falling slightly short of its P1.58 trillion target. The Bureau of 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 increase in income taxes that were filed online in 2025, beating the 2024 growth rate of 33.87 percent. Many of those 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.
It is encouraging to see online tax activity increasing, which also shows that the poor are becoming more willing to contribute to nation-building. Whether the reason is the Bureau of Internal Revenue is getting better at encouraging tax payments, or trust in government is improving due to decreased corruption, or both, it is a welcome trend not just for government, but for governance as well.
Hopefully there will come a time when more Filipinos will feel better about filing and paying taxes, whether online or not, especially if their government can earn our trust by making prudent and responsible use of our hard earned contributions.*
