Analyzing the Financial Management Practices and Resilience of Online Freelancers in Laguna amid Digital Platform Taxation

This study investigates the financial management practices and financial resilience of online freelancers in Laguna within the context of the newly implemented Digital Platform Taxation (DPT), which imposes a 12% VAT on digital services. Guided by Carroll’s Buffer Stock Theory, the study examines how Buffer Stock Savings (BSS), Perceived Income Volatility (PIV), and Liquid Asset Accessibility (LAA) influence freelancers’ capacity to withstand financial shocks. A mixed-methods exploratory pilot approach was employed. Quantitatively, a structured survey was administered to a purposive-stratified sample of 30 online freelancers. Qualitatively, semi-structured interviews were conducted with a criterion-purposive subsample of 10 participants to contextualize the statistical data, enriching and validating the survey findings. Descriptive statistics, Pearson’s Correlation, and Multiple Linear Regression were used to analyze the quantitative data, alongside thematic coding for qualitative responses. Results indicate moderate relationships among BSS, PIV, LAA, and overall financial resilience, supporting the relevance of Buffer Stock Theory in the digital gig economy. Qualitative insights further revealed freelancers’ adaptive financial behaviors and the challenges posed by the 12% VAT pressure. The study’s findings suggest that while freelancers exhibit adaptive strategies, their resilience is primarily short-term. The study supports the development of targeted financial literacy program aimed at strengthening the financial stability and planning capabilities of online freelancers in Laguna, with implications for policymakers and digital platforms.