Summary
RMC No. 97-2023 gives tax compliance reminders to candidates and other participants in national or local elections, including Barangay and Sangguniang Kabataan (SK) elections.
Key points
- Registration not a prerequisite. BIR registration and payment of the registration fee are not required to file a certificate of candidacy. A candidate may register under EO 98 using BIR Form No. 1904 to get a TIN, without paying the annual registration fee.
- When registration and fee apply. Candidates who later engage in business, buy goods or services for the campaign, receive donations and campaign contributions, or have income payments subject to Withholding Tax must register or update with their RDO and pay the registration fee.
- Withholding tax. Payments by political parties and candidates for goods and services related to campaign expenditures are subject to five percent (5%) Creditable Withholding Tax under RR No. 11-2018. The same applies to payments by individuals or juridical persons for goods and services intended as campaign contributions.
- Records and receipts. Candidates keep records of contributions, donations and expenditures for the Statement of Contributions and Expenditures submitted to COMELEC under RR No. 8-2009. They buy Non-VAT BIR Printed Receipts from their RDO for every contribution, with in-kind contributions valued at fair market value.
- Penalties. Candidates who fail to register and comply face penalties under existing laws and issuances.
Who is affected
- Candidates in national and local elections, including Barangay and SK elections
- Political parties
- Persons making campaign contributions
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.