With the 2025 National and Local Elections over, the Bureau of Internal Revenue (BIR) reminded all candidates that they are subject to tax regulations and must prepare themselves to meet with the requirements, according to a news article by the Philippine News Agency (PNA). Failure to do so could mean tax evasion charges.
To put things in perspective, posted below is an excerpt from the news article of the PNA. Some parts in boldface…
The Bureau of Internal Revenue (BIR) is reminding all candidates and political parties who ran in the 2025 elections that they are subject to tax regulations and must comply with key requirements as part of their duties as candidates for public office.
In a television interview, BIR Commissioner Romeo Lumagui Jr. emphasized that all candidates and political organizations, including party-list groups must issue BIR-registered invoices for contributions they receive, whether in cash or in kind.
“At pag nagbabayad sila sa kanilang mga suppliers ay kinakailangan nilang mag-withhold ng 5 percent dun sa kanilang suppliers (They also need to withhold 5 percent when they pay to their suppliers),” he said, as quoted in a news release on Thursday.
He added that candidates must keep track of their expenses and submit detailed reports, or Statement of Contribution and Expenditure (SOCE), not just to the Commission on Elections but also to the BIR.
“Para makita natin na lahat kung compliant ang kanilang obligasyon dito (This is for us to determine if everybody is compliant with their obligations),” he said.
Lumagui further reminded that while candidates and parties are allowed to keep excess campaign contributions, they need to pay taxes on these.
“Pagka sobra naman ang natanggap nila na mga contributions sa mga ginastos nila, kinakailangan nilang bayaran ang income tax patungkol dito sa sobrang natanggap nila (If the contributions they received are more than what they spent, they need to pay income tax on the excess funds).”
Let me end this post by asking you readers: What is your reaction to this recent development? Do you think all the candidates will be able to comply with both the COMELEC and the BIR? Do you know any local candidate who received funds from your local community during the election campaign season?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
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