In accordance with the BIR’s Revenue Regulation No 8-2009 candidates are directed to withhold the 5% percentage tax from the payments for all expenses to be incurred by the candidate during the campaign period. This includes payments for goods, such as campaign materials, and services, such as rental for vehicles.
He or she is also required to acknowledge donations with an official receipt! This was made clear by the officials and employees of the Revenue District 086 based here in the City of Borongan during the 09 March 2016 Tax Campaign Kick-Off at their office located in Brgy Songco, this City. This means that when a candidate purchases something worth P1,000.00 for his campaign activities, he or she has to deduct 5% of that amount, which is P50.00 if the supplier is a non-VAT tax payer, and remit that same amount to the BIR on or before the 10th day of the succeeding month. If the supplier pays VAT, the amount corresponding to the VAT shall be deducted first and then the amount remaining will be the base for the computation of the corresponding 5% percentage tax to be deducted and then remitted to the BIR. Failure to deduct and remit will mean penalties. Accordingly, a candidate has to apply as Withholding Tax Agent with the BIR before the election campaign begins in order to be able to comply with the directive to withhold percentage tax for all his or her expenditures related to the elections. Individuals and groups who wish to donate goods and services to the candidate has to comply with the directive to deduct the required percentage tax for remittance to the BIR. Such donation together with the withheld percentage tax shall form part of the expenditures of the candidate and which the candidate has to acknowledge and remit. Anyone intending to spend for a candidate must be made aware that he or she must be authorized by the candidate to spend in his behalf with the donation properly acknowledged with an official receipt. In this regard, the candidate also has to apply for the printing of official receipt with the BIR. All official receipts, whether as evidence of payments for goods and services and as acknowledgment for donations received, shall be submitted to the COMELEC together with the required documents comprising the Statement of Contributions and Expenditures [SOCE] after the elections. Being a candidate really is a serious business. - Alberto C Acampado, LLSO III
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