The Bureau of Internal Revenue (BIR) has issued a reminder to all candidates and political parties who ran in the 2025 elections that they must comply with tax regulations as part of their responsibilities as public office seekers.
In a television interview, BIR Commissioner Romeo Lumagui Jr. said all candidates, including party-list groups, must issue BIR-registered invoices for all campaign contributions, 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.
Candidates are also required to monitor their expenses and submit a Statement of Contribution and Expenditure (SOCE) to both the Commission on Elections and 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),” Lumagui explained.
He stressed that while candidates and parties can keep excess contributions, they must pay the corresponding income tax.
“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),” he added.
Non-compliance may result in tax evasion charges, and in some cases, even disqualification from public office.