Let’s face it – TAX is a three-letter word in this country. Next to death, tax is inevitable, but it doesn’t really need to be as painful. The truth is, unlike other tax systems in the world, the Philippines is perhaps one of the most complicated.
In 2017, Marvin Galang, a Certified Public Accountant (CPA) by profession and with a flair for tech, started a journey with his wife, Jenny and a small team of developers and training specialists to develop a web-based platform where Filipino taxpayers can generate their tax forms, file their taxes and pay directly to the Bureau of Internal Revenue (BIR) for a seamless, end-to-end experience. By 2019, JuanTax became the first certified Electronic Tax Software Provider or eTSP of the BIR.
Heavily bootstrapped from the start, JuanTax has had its share of headwinds but proved resilient in fulfilling its mission to help the Philippine economy through tax compliance.
As the keynote speaker of the CEO Summit presented by CEO Insights Asia this Friday, October 28,2022 at the Novotel Manila in Quezon City , Marvin will kick off the conference by inspiring the top leaders in attendance with his story – one of purpose, impact and resilience.
The Independent Investor had a chance to get a glimpse of Marvin’s journey as well as his future plans in this 1:1 chat.
The Independent Investor: What made you think of JuanTax? What was the light bulb moment?
Marvin Galang: It’s from our own painful experience. A new entity we organized in 2016 had to file a tax return. Our bookkeeper approached me one day asking me to physically sign a VAT return. I asked her a question (given my background as a tax auditor in the US) on the basis of the numbers, if cash or accrual. She said, “it depends.” Scared me. Upon investigating, found out she’s correct and that it depends if the subject of the transaction is goods or service. Found out further that complying will require that data to be used in 11 different tax forms. I envisioned a process where we only enter it once and it automatically populates all the forms, a fully digital and compliant process. That’s how JuanTax was born.
TII: Two years later the BIR launched the eTSP certification program that JuanTax got an accreditation for. How did the eTSP stamp help you get traction?
MG: The main challenge we experienced launching in 2017 was recognition from the government. Questions like, “is the BIR aware of this” or “what happens to our return when filed through JuanTax” were common during presentations. The eTSP certification we received in 2019 addressed all of that and has allowed us to focus on sharing value versus trying to prove our authenticity.
TII: How did you scale the product and the company from there?
MG: We have a clear understanding of who our target market is and we stuck and focused on them. I’m referring to the CPA or tax accountant market. Product features were focused on what they need. We treasure every feedback they give which allowed us to prove the platform to many firms who became our fans and source of recommendation.
It also brought us into a deeper relationship with the top association of accountants, the Philippine Institute of Certified Public Accountants. That relationship has grown not only as an avenue to advertise but as a true partner in technology, especially during the pandemic.
TII: The pandemic in 2020 hit almost all businesses in an unprecedented way. JuanTax seemed to be one of the few that thrived from it. What were the challenges then, and how did you pivot?
MG: We saw two months of solid traction in the beginning of 2020 which eventually died on the third month, as the effects of COVID hit everyone. I have to admit, it rocked the core of our leadership and every aspect of management you can think of. What helped us stand up immediately and work on solving problems week after week is our clear sense of why we are in business – our purpose.
First, we went back to our clients, CPA and tax firms, who were scrambling to help their clients and their own businesses. We identified their needs and how JuanTax can help.
Second, we committed ourselves to work with the government as they are scramble for collections. We rolled out a new product called “FastFile” to allow taxpayers to easily register and immediately file and pay their tax returns.
Third, we knew top organizations in the accounting industry struggled heavily, so we committed our resources in allowing them to recover and transform so they can help struggling accountants and tax preparers. We assisted them in online activities, providing not just the platform to conduct them but also the infrastructure, technology and people to make it happen.
Fourth, we rolled out JuanTax Academy focused on accounting and tax education as we saw their need to up-skill, re-skill.
Fifth, we went to the grass roots – 57 universities and colleges who struggled to help their students to fulfill their requirements of internship as very few can accommodate them online. We provided the training to prepare the students and the link, placing the students to different firms and companies that have embraced digital transformation and are already in our platform.
TII: Where is JuanTax today?
MG: We have over 30,000 users spread across 4,000 paying organizations and near 200 partner firms. Though we started generating revenue in 2019, our year-over-year revenue has doubled in 2021 and on track to double in 2022. We expect to operate at break-even this year. We also enjoy a high Net Promoter Score consistently rating in the 9’s.
TII: With the current administration pushing the envelope on automating government services, what is “next-level” JuanTax and what do you need to get there?
MG: This is inevitable given the passing of TRAIN law in 2018. We’ve been anticipating the implementation of e-invoicing and e-receipt which we embedded in our development plan since then. Our development and strategies are now focused on this, which includes a fundraise to fund the development and expand the market with strategic partners.
TII: What’s your advice to founders of startups to help them along their journeys?
MG: I’ve had my share of failures, especially in business. As a startup founder, especially the new ones, never lose the reason why you wake up in the morning and get out of bed. Never lose your purpose. Profit is important. But it is not why you are in business. You started a company to solve a problem. A problem you identified, and the world tapped you to solve it. Be resolute. The journey will be slow for some, challenging and hard to others. But the reward is well worth it. See you at the top.
(Editor’s Note: the author served as an accelerator/consultant to JuanTax since 2018, is a member of the Board of Directors and owns a token share in the company.)