RR No. 8-2009: Amends furtehr Sections 2.57.2 and 2.57.3 of RR No. 2-98, as amended, subjecting to Creditable Withholding Tax the income paymetns made by political parties and candidates of local and national elections of all their campaign expenditures and income payments made by an individual or juridical person forming part of their campaign contributions to candidates of local and national elections and to political parties

Key points

1. Payments covered and rate. Section 2.57.2 adds item (W): income payments of political parties and candidates of local and national elections for all their campaign expenditures. It also covers payments by individuals or juridical persons for purchases of goods and services intended as campaign contributions to political parties and candidates. The creditable tax rate is Five percent (5%).
2. Withholding agents. Section 2.57.3 adds item (D): all individuals, juridical persons and political parties, for income payments made as campaign expenditures and/or purchases of goods and services intended as campaign contributions, must deduct and withhold the tax.
3. Purpose. The Regulations ensure that purchases of goods and services for campaign and election activities of candidates, contributors and supporters are subject to withholding of tax.

Who is affected

• Political parties and candidates in local and national elections
• Individuals and juridical persons making campaign contributions in goods and services

Deadlines and effectivity

• Issued October 23, 2009