Bureau of Internal Revenue
MANILA, Philippines — The Bureau of Internal Revenue (BIR) has reminded politicians and political parties that they should start filing the mandatory statement of contributions and expenditures (Soce) to the Commission on Elections (Comelec) and the BIR office in the places where they are registered.
“Within 30 days after the May 9, 2022 national and local election, every candidate and treasurer of the political parties and party list groups, whether winning or losing, shall submit the Soce to the Comelec and revenue district office where the candidates, political parties and party-list groups are registered,” the BIR said in a statement.
As early as February, Internal Revenue Commissioner Caesar Dulay issued a revenue memorandum circular reiterating the tax dues of candidates, political parties, as well as campaign financiers.
Dulay said that “as a general rule, campaign contributions are not included in the taxable income of the candidate to whom they were given, the reason being that such contributions were given not for the personal expenditure/enrichment of the concerned candidate, but for the purpose of utilizing such contributions for his/her campaign.”
“Thus, to be considered as exempt from the income tax, these campaign contributions [should] have been utilized to cover a candidate’s expenditures for his/her electoral campaign during the campaign period,” Dulay said.
Dulay said that all unspent or excess campaign funds as well as donations “shall be considered as subject to income tax and as such, must be included in their/his/her taxable income as stated in their/his/her income tax return.”
“No further deduction, either itemized or optional, shall be made against the said taxable income. Further, any candidate or political party/party list group, whether winning or losing, who fails to file with Comelec the [Soce] required under the Omnibus Election Code shall be automatically precluded from claiming such expenditures as deductions from the campaign contributions making the entire amount directly subject to income tax,” Dulay added.
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