Online tax compliance platform Taxumo has released its 2024 State of Online Taxation report, highlighting the result that millennials continue to dominate as taxpayers although Gen Zs are catching up.
Millennials continue to be the backbone of the online taxpayer demographic, contributing to almost 75% of income filings in 2024. This generation, born between 1981 and 1996, remains a critical driver of economic activity and tax revenue in the Philippines.
However, Gen Z (born after 1996) online taxpayers are rapidly growing. Their share of income filings has grown significantly, from 9% in 2023 to 12.7% in 2024.
This generation’s growing economic influence is indicative of their early entry into the workforce and their preference for digital solutions in managing their financial responsibilities. Gen Z’s rising participation reflects their adaptability and forward-thinking approach to economic engagement.
Female Millennials alone account for the highest percentage across all categories at 42.9%, followed by Female Gen Z at 10.6%. This indicates a strong presence of female representation in these younger generations within the socioeconomic spectrum.
Despite economic challenges, the adoption of online tax payments continues to surge. Tax collections through Taxumo have grown by approximately 58.45% year-on-year, reflecting a broader trend towards digitalization and ease of compliance.
The Bureau of Internal Revenue (BIR) reported an 11% increase in April tax collections, exceeding their target by P35.114 billion.
However, informal employment remains a significant issue, with IBON Foundation estimating that 41.6% of the workforce, or 20.4 million people, are engaged in informal work. This includes domestic workers, self-employed individuals, and unpaid family workers.
The prevalence of informal employment underscores the need for more robust economic policies and support systems, the report said.
The majority of poor taxpayers who were poor last year remained poor (65%.) 41% of individuals in the low-income category have experienced a decline in their socioeconomic status coming from a higher earning bracket, while 40% have seen an improvement in their socioeconomic status.
None of the individuals in the rich category have experienced a decline in their economic status, but 44% are newly rich – finally breaking out of their high-income status from the previous year.
Service-oriented businesses, including events management, travel agencies, and social media agencies, dominate the online tax filings. The IT & tech sector also shows substantial representation, indicating a thriving technology-driven economy.
