Choosing the right income category is important because it determines how your earnings are mapped to your BIR forms and financial reports. When adding income in your Cashflow tab, you’ll be asked to choose one of four categories to ensure your taxes are calculated accurately.
Income Categories at a Glance
Category | What it covers | Examples |
Sales - Retail | Income from selling physical products. | Cosmetic products, clothes, or convenience store items. |
Sales - Services | Income earned from providing professional or creative services. | Legal services, event management, or content creation. |
Partnership Proceeds | Your share of income from a General Professional Partnership (GPP). | This applies only if you are part of a registered GPP (e.g., Law or Accounting firms). |
Other Income | Earnings that are not part of your normal business operations. | Interest income or gains from investments. |
Note on Other Income: This category should not be used for your regular sales or services. It is strictly for non-operating income to prevent misclassification in your tax filings.
How this affects your Tax Forms
Taxumo automatically maps these categories to the correct sections of your Income Tax Return:
Operating Income: Both Sales - Retail and Sales - Services are reported as your primary Sales, Revenues, or Receipts.
Partnership Revenue: Partnership Proceeds are reported separately as part of your partnership-specific earnings.
Non-Operating Income: Other Income is mapped to the "Other Non-Operating Income" section of your tax forms.
Need a hand?
If you’re unsure which income category to use, just choose the one that best matches how you earned the income. If it still feels a bit confusing, don’t hesitate to reach out—our support team is happy to guide you!
Email us: customercare@taxumo.com
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