According to RR 7-2024, if you have multiple transactions that are each under 500 pesos, you can combine them into a single sales invoice. This means you don’t need to issue a separate invoice for every small transaction, making your bookkeeping simpler and more efficient.

Yes! You should definitely register your online business. According to RMC No. 55-2024, online sellers are required to register their business until July 15, 2024, giving them more time to complete your tax registration and compliance.

At Taxumo, your privacy is our priority. We strictly follow data privacy, ensuring that all your information is safe and secure. Rest assured, all your transactions are fully protected. You can trust us to keep your details private!

The 8% income tax is a popular, simplified tax option. It replaces both the regular graduated Income Tax and the 3% Percentage Tax for self-employed individuals whose gross sales are ₱3 million or less annually. It is simpler because you do not track expenses.

How it works (Example):

• • Gross Income: ₱800,000

  • Less ₱250,000 Tax Exemption

  • Taxable Income: ₱550,000

  • Tax Due: ₱550,000 $\times$ 8% = ₱44,000

 Tip: Many opt for this 8% tax scheme for its straightforward calculation

You are still required to file “zero returns” (also called no-due-tax returns) on time to stay compliant. Failing to file even with zero income leads to penalties.

BMBE (Barangay Micro Business Enterprise) was created to support micro businesses under the industries of production, processing, or manufacturing of products, including agro-processing, as well as trading and services. However, BMBE does not cover professional services from PRC licensed professionals such as Doctors, Lawyers, Accountants, etc.

You qualify if your total assets are less than 3 million pesos and you are only operating within a barangay. While you are exempt from paying Income Tax, you still need to file your Income Tax Return, Annual Income Tax, and pay your Percentage Tax.

Also make sure that your suppliers also issue Sales Invoices. BMBE is required to use the Graduated Itemized Deduction method, so all expenses must be listed.

If you want to learn if you’re qualified with BMBE, check with our Accountant Partners for consultation.

Yes, you can deduct ordinary and necessary business expenses (like internet, software, or rent) if you choose the regular graduated income tax rates.

If you use the simplified 8% flat tax rate, you cannot claim expense deductions.

Non-compliance with the BIR can result in serious penalties, including:

• Surcharges: 25% to 50% on the tax due.

• Interest: 20% per year.

• Compromise Penalties and even criminal liability under the Tax Code.

Taxumo can help you with your taxes in two ways. Firstly, we offer a service called Taxumo Accountant Buddy, where we connect you with a professional accountant to guide you through the tax process. But if hiring an accountant isn’t in your budget, don’t worry! Taxumo is also made for people who aren’t experts in accounting. Our system is easy to use, so you can handle your taxes yourself without hiring an accountant.