The Bureau of Internal Revenue (BIR) on Tuesday, Jan. 25, reminded candidates and political parties in the 2022 national and local elections to register with the nearest revenue district office.
Otherwise, revenue officials said they will lose the income tax exemption privilege on contributions and donations given by supporters for their candidacy.
Revenue officials who declined to be named said the candidates' registration is prescribed by the Omnibus Election Code and implemented by Revenue Memorandum Circular Nos. 38-2018 and 31-2019.
Revenue officials explained that political contributions are exempted from income tax because they are given by supporters of a candidate for his campaign and not for personal enrichment.
They said, however, that excess or unused contributions are subject to income.
They said campaign funds must be utilized within the campaign period set by the Commission on Elections (Comelec), or be subject to taxation if spent before and after said period.
Both winners and losers as well as political parties must also submit to the Comelec a Statement of Contributions and Expenditure (SOCE) to avoid paying income tax on the cash and in kind campaign contributions received.