Millennials drive online tax payments

MANILA, Philippines — Generation Y, also known as millennials, continued to drive online tax payments in the country, accounting for almost 75 percent of income tax filings this year.

Based on the 2024 State of Online Taxation conducted by online tax compliance platform Taxumo, millennials or those born between 1981 and 1996 remained the backbone of the online taxpayer demographic.

Millennials accounted for 73.5 percent of income filings in 2024.

Taxumo said Generation Z (Gen Z) online taxpayers were also growing, accounting for 12.7 percent of tax filings from just nine percent in 2023.

“These shifts have interesting implications on work attitudes and experiences, as millennials and Gen Z are the primary drivers of the Philippine labor force,” Taxumo said.

“As more Gen Z individuals enter the labor market, they bring fresh skills and perspectives that can influence economic trends and workforce dynamics,” it added.

On the other hand, the Silent Generation and Boomers each contribute less than one percent to income filing, reflective of their retirement status and reduced involvement in active employment.

The study also revealed that 21 percent of online tax filings in the Philippines come from service-oriented businesses including events management, travel agencies and social media agencies.

The information technology sector garnered 15 percent; professionals such as doctors, lawyers and real estate brokers accounted for six percent of total filings while online sellers constituted three percent.

The taxation platform said the current tax trend illustrates a diverse landscape of businesses in the digital economy as professionals adapt to online platforms in establishing their businesses and managing their taxes effectively.

However, even if the adoption of online tax payments continues to surge, informal employment remains an issue as Taxumo emphasizes “the need for more robust economic policies and support systems” in the country.

It is estimated that roughly 20.4 million people are engaged in informal work including domestic workers, self-employed individuals and unpaid family workers.