Candidates for this year’s elections, political parties and campaign contributors are required to pay the Bureau of Internal Revenue (BIR) withholding tax on campaign expenditures, a BIR press release said Thursday, March 31.
They also need to issue official receipts and withhold taxes pursuant to Revenue Regulations (RR) No. 8-2009 as amended by RR No. 7-2011 and other related revenue issuances. The registration of political parties or party list groups shall be made with the Revenue District Office (RDO), the press release said.
OIC-Revenue District Officer Richard R. Oquendo of the Revenue District 78 in Binalbagan, Negros Occidental, said Revenue Memorandum Circular (RMC) No. 22-2022 requires individual candidates to accomplish BIR Form 1901, and submit copies of their Certificates of Candidacy (COC) and valid IDs.
Political parties/party list groups need to accomplish BIR Form 1903 and submit a COC copy.
Oquendo said that all candidates and party list groups should pay an annual registration fee (ARF) with the BIR.
Candidates/groups that purchase goods and services as campaign expenditures and income payments made by individuals and juridical persons for their acquisition of goods and services intended to be given as campaign contributions to political parties and candidates shall be subject to five percent creditable withholding tax (CWT), pursuant to BIR RR 11-2018, he said.
Covered by the expanded withholding tax are media services, printing jobs, talent and entertainment fees, rentals of real and personal properties, among others, he said.
It has been noticed that spending during the local and national elections are mostly on the election paraphernalia seen along the roads and barangays as well as the use of radio stations and television networks that endorse candidates and political groups, the press release said.
The BIR officer mentioned that candidates who are re-electionists are aware of these regulations that have been required for 24 years. He stated that the withheld amounts for the supplier of goods and services are allowed as tax credit or deduction against its total income tax liability.
This year’s tax campaign theme “Pagbabayad ng Buwis sa Bayan, Tatak ng Kabayanihan” emphasizes the heroism of taxpayers giving their fair share of taxes even during the most difficult time in this pandemic, Oquendo said.
Oquendo also reminded all taxpayers that the annual income tax return (AITR) filing is ongoing, which is due on or before April 18, the last day of filing. He urges taxpayers to file early to avoid the last minute filing of the annual ITR.*