RR No. 10-2009: Amends further Sections 2.57.2 and 2.58 of RR No. 2-98, as amended, clarifying that sub-paragraph (W) as recently issued under RR No. 8-2009 should be sub-paragraph (X)

Key points

1. Sub-paragraph (X) of Section 2.57.2. Political parties and candidates in local and national elections withhold a creditable income tax of five percent (5%) on their purchases of goods and services as campaign expenditures. The same rate applies to payments by individuals or juridical persons for goods and services intended as campaign contributions to parties and candidates.
2. No Monthly Alphalist of Payees. Withholding agents for a limited time during the election period, who are not engaged in trade, business or practice of profession, use only ATC WI 680 or WC 680 in remitting on BIR Form No. 1601-E. They are not required to attach the Monthly Alphalist of Payees (MAP).
3. Annual information return. The annual return is BIR Form No. 1604E, due on or before March 1 of the following year. Election-period withholding agents who are not in business or profession and use only WI 680 or WC 680 are excepted, and their due date is within thirty (30) days after the day of election.

Who is affected

• Political parties and candidates in local and national elections
• Individuals or juridical persons making campaign contributions
• Election-period withholding agents not engaged in business or profession

Deadlines and effectivity

• BIR Form No. 1604E: on or before March 1 of the following year
• Election-period withholding agents using only WI 680 or WC 680: within 30 days after the day of election