BIR REGISTRATION |
- All candidates, political parties/party list groups and campaign contributors, are required to register with the BIR, issue official receipts and withhold taxes.
- The registration shall be made with the:
- RDO having jurisdiction over the political subdivision where the candidate is seeking election; and, if this is not applicable,
- RDO having jurisdiction over their principal residence or registered head/principal office address, as the case may be.
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- The individual candidates shall be registered as “Professional – In General” (tagged as “politician”) and be required to submit the following:
- Duly accomplished BIR Form No. I 901 [for individual candidates not yet registered or registered as business taxpayer, individual candidates registered as local employees, registered under E.O. 98 and/or One-Time Transaction (ONETT)];
- Any identification issued by an authorized government body (e.g. Philsys ID, Birth Certificate, passport, driver’s license) that shows the name, address and birthdate of the applicant;
- Certificate of Candidacy (COC) from the Commission on Election (COMELEC).
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- The political parties/party list groups shall be required to submit the following:
- Duly accomplished BIR Form No. 1903; and
- COC from the COMELEC.
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- Individual Campaign contributors:
- To register under EO 98 as taxpayer type
- Place: RDO having jurisdiction over his place of residence
- Form: BIR Form No 1904
- Non-Individual campaign contributors:
- To register with RDO having jurisdiction over its principal place of business/head office
- Form: BIR Form No. 1903.
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ANNUAL REGISTRATION FEE AND CERTIFICATE OF REGISTRATION |
All candidates and political parties/party list shall pay an Annual Registration Fee amounting to Php 500.00 and be issued a Certificate of Registration (COR) |
COR is no longer required to be issued for individual candidates who are not engaged in business. |
REGISTRATION OF BOOKS |
All candidates and political parties/party list shall keep books and other accounting records such as Cash Receipts Journal and Cash Disbursement Book or their equivalent |
ISSUANCE OF BIR REGISTERED NON-VAT OFFICIAL RECEIPT |
- All candidates and political parties/party list shall register Non-VAT Official Receipts (ORs) to be issued for every contribution received, whether in cash or in kind valued at fair market value (FMV)
- Candidates may opt to buy BIR Printed Receipts or apply for Authority to Print using BIR Form No. 1906 with the concerned RDO
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INCOME TAX |
General rule: campaign contributions are not included in the taxable income of the candidate to whom they were given as they were given for the purpose of utilizing such contributions for his/her campaign. |
To be exempt from income tax, these campaign contributions must have been utilized to cover a candidate’s expenditures for his/her electoral campaign during the campaign period. |
Unutilized/excess campaign funds or donations utilized before the campaign period shall be subject to income tax and must be included in the taxable income. |
DONOR’S TAX |
Donations/contributions that have been utilized during the campaign period as set by the COMELEC are exempt from donor’s tax.
Donations made by corporations are subject to donor’s tax and may not be deducted as political contributions on the part of the donor/corporation.
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WITHHOLDING TAXES |
- The following are subject to 5% withholding tax:
- Income payments made by political parties and candidates on their purchases of goods and services as campaign expenditures
- Income payments made by individual or juridical persons for their purchases of goods and services intended to be given as campaign contributions
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- The following are among those covered by expanded withholding tax but not limited to:
- Media Services
- Printing Jobs
- Talent/Entertainment Fees
- Rentals of Both Personal/Real Property/ies
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PRESERVATION OF ACCOUNTING RECORDS |
All political parties/party list groups and candidates shall be responsible for the
preservation of records and contributions and expenditures. |
POST – ELECTION |
- Every candidate and Treasurer of the political parties/party list groups shall submit the Statement of Contributions and Expenditures to COMELEC and RDO where the candidates/political parties/party list groups are registered within thirty (30) days after the election.
- The registration of individuals in their capacity as candidates shall automatically end ten (10) days after the deadline of filing of the Quarterly Remittance Return of Creditable Income Taxes Withheld (BIR Form 1601 EQ) following the day of the election.
- The CSS Chiefs of the concerned RDOs shall cancel the Branch code of those that were registered as Branch and end-date the Form Types 0619-E, 1601EQ and Tax Type WE of individual candidates, for purposes of election, that were registered and/or updated. Those candidates who are not engaged in business shall be reverted to its previous taxpayer type, e.g. EO 98 or Local Employee. However, the political parties including party list groups shall subsist, unless they opt to update their registration.
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PENALTIES |
All candidates, political parties and party list groups who failed to register and comply with the requirements of the BIR will be subjected to penalties under the Revised Consolidated Schedule of Compromise Penalties for Violations of the National Internal Revenue Code (NIRC) of 1997, as amended (RMO No. 7-2015) |