• CHERYL G. CRUZ
The Bureau of Internal Revenue is reminding all candidates in the Barangay and Sangguniang Kabataan Elections (BSKE) on Oct. 30 to maintain a record of contributions, donations, and expenditures, as well as issue receipts for every campaign contribution, in cash or in kind.
BIR Commissioner Romeo Lumagui Jr., in Revenue Memorandum Circular 97-2023, said “all candidates receiving donations and campaign contributions shall purchase from the RDO (Revenue District Office) where they are registered, the non-VAT BIR printed receipts to be issued for every contribution, in cash or in kind”.
For contribution in kind, it shall be assessed at fair market value, Lumagui said, adding the record of contributions, donations, and expenditures will be used for the Statement of Contributions and Expenditures to be submitted to the Commission on Elections, under Revenue Regulation (RR) No. 8-2009.
“Candidates who later engage in business, have purchased goods and/or services for the campaign and election activities, have received donations and campaign contributions, or, in general, have income payments subject to withholding tax, must register or update their BIR registration details with the RDO where the candidate is registered and pay the corresponding registration fee,” the memorandum circular, dated Sept. 22, but made public the other day stressed.
It added that income payments made by political parties and candidates of any national and local elections, including the BSKE, on all their purchase of goods and services related to campaign expenditures, and income payments made by individuals for their purchases of goods and services intended to be given as campaign contributions to political parties and candidates shall be subject to five percent creditable withholding tax. | CGC
