MANILA (Mabuhay) — The Bureau of Internal Revenue reminded candidates who ran for office in the recent May 2013 polls to pay the appropriate taxes for the contributions they have received.
In Revenue Memorandum Circular No. 48-2013, the tax agency reiterated candidates need to remit the withholding tax slapped on purchase of goods and services during the campaign period.
“The obligation to withhold 5 percent is uniform in both payments of goods and services and, likewise, there is no distinction whether the source is through donation, contribution or from the personal fund of the payor, or elsewhere,” the circular read.
Moreover, the BIR stressed unused campaign contributions or those which were not declared by the candidate in his reported expenditures to the Commission on Elections, are subject to income tax.
“Any candidate who fails to file with the Commission on Elections the appropriate statement of expenditures… shall be automatically precluded from claiming such expenditure as deductions from his/her campaign contributions,” the circular read.
“As such, the entire amount of such campaign contributions shall be considered as directly subject to income tax.”
BIR Commissioner Kim Jacinto-Henares earlier said she is hoping for a “high-compliance rate” from candidates and added her agency may file its first election-related case in the second half of the year. (MNS)