The Bureau of Internal Revenue (BIR) is asking both the winners and losers in the recent national and local elections to submit their Statement of Contributions and Expenditures (SOCE) on or before June 9 to the revenue district office where they were registered.
The BIR said political parties and party list groups are also required to submit SOCE, 30 days after the poll as mandated under Revenue Memorandum Circular 22-2022.
It said the whole donations will be placed under the tax umbrella if the candidate fails to file the SOCE.
The Commission on Elections (Comelec) also required candidates to file the same document, or they will not be allowed to run in future polls.
The Omnibus Election Code exempts from income tax cash and in kind contributions to political candidates and parties on the policy that the donations are used to finance their candidacy and not to personally enrich themselves.
However, contributions not spent during the election period as declared by the (Comelec) are subject to income tax, or unless returned to donors.
Likewise, campaign expenses are covered by five percent creditable withholding tax like purchases of campaign materials, talent fees of entertainers and rental of political headquarters.