Taxumo is an easy DIY tax compliance system that will walk you through the process of filing your Annual ITR.
This article will talk about the Annual ITR form used for individuals earning purely from compensation/business (meaning they don't earn anything as an employee):
(1) 8% Income Tax Rate; OR
(2) Optional Standard Deduction (OSD)
Ok, let's get started!
Step 1: Now signing up to Taxumo is easy. You can sign up by using your FB Account, your Google Account, or the old fashioned way - providing an email and password.
Step 2: Once you're signed up, you'll be taken to an onboarding screen:
Click on LET'S GET STARTED.
Step 3: Make sure that 1701Q/1701 is selected:
Click on PROCEED.
Step 4: Enter all your taxpayer details:
Note this is YOUR TIN, Name, Address, etc -- not your employer's or payer's but your own. Once you've completed, the PROCEED button can now be pressed. Press PROCEED.
Step 5: Fill out your business profile:
Business Type: pertains to whether you're Selling Goods or you're Selling your Services. Choose which one applies to you. If both, choose "Sales/Goods Business."
Income Source: If part of your income is from Employment, choose "Mixed from Business & Employment." Otherwise, choose "Solely from Business."
Line of Business: If you have your Certificate of Registration (COR) with you, you can get this from the PSIC / Industry section. This is basically what industry you're in. An example would be: "9309 Other Service Activities, N.E.C." You can actually start typing here and a list of options will appear that you can then choose from.
Deduction Method: If you are opting for OSD, choose "Optional Standard Deduction." If not, choose "Itemized Deduction." If you want to opt for 8%, whatever you select here won't be applied, and 8% will instead be used.
Alphanumeric Tax Code: You choose whether you want to use 8% or the "normal" graduated way of computing your income tax AND also indicate whether you're earning from business, profession or mixed. How you choose:
If you're earning solely from Business Income or Income from Profession (none of your income is from employment), your choices can be narrowed down to:
II012 Business Income - Graduated IT Rates
II015 Business Income - 8% IT Rate
II014 Income from Profession - Graduated IT Rates
II017 Income from Profession - 8% IT Rate
You then select the appropriate one depending on whether you want to use Graduated IT Rates or the 8% IT Rate.
Taxpayer Type: You now choose whether you are a SOLE PROP or a PROFESSIONAL.
BIR Registration Date: Taxumo uses this field to show the forms that you would have needed to file since the date indicated. You may select a later date than your actual registration date so that only the newer ones (since the date selected) are shown in your tax dues.
Certificate of Registration: If you have a clear photo of your COR with you, you can upload it here. If you don't you can skip this. This field is optional.
Signature: If you have a clear photo of your signature, you can upload it here as well. Otherwise, you can skip this. This field is optional as well.
Press PROCEED to go the next screen.
Step 6: The Taxumo Power Up Plans will then be shown:
DIY Prepaid Plan and DIY Prepaid Plan+ gives you significant savings for features shown. However, if you can't decide or if you just want to pay with each filing (the DIY model), then just press SKIP THIS STEP.
Step 7: You're now all ready to file. Press on the FILE NOW button beside the Annual Income Tax Card to begin the process:
You will next be presented with a set of 3 screens wherein you can enter the information Taxumo needs to fill out your form and compute your tax dues.
To learn more about these screens, please check out this article:
How to File 1701A - Annual Income Tax
IMPORTANT: Note that if you are a mixed income earner (you are earning from business AND as an employee), you will file a different form called Form 1701 - we're still working on the final version of that form as the BIR will be releasing a new version soon. Once that's released we should be able to deploy as well.