RMC No. 22-2022

RMC No. 22-2022 (February 21, 2022) provides tax compliance reminders for the May 9, 2022 National and Local Elections. Candidates, political parties/party-list groups, and campaign contributors must register with the BIR, issue official receipts, and withhold taxes under RR No. 8-2009, as amended by RR No. 7-2011. Individual candidates register as "Professional – In General" tagged "Politician" (BIR Form 1901, government ID, and COMELEC COC); parties/party-list groups are tagged "Political Party" (BIR Form 1903 and COC); individual contributors register under EO 98 (BIR Form 1904) and non-individual contributors (BIR Form 1903). All must pay the ₱500 Annual Registration Fee, keep and register books of accounts, and issue registered Non-VAT official receipts for every contribution, whether in cash or in kind valued at fair market value. Campaign contributions used to cover campaign expenditures during the campaign period are generally exempt from income tax; unutilized/excess funds (and donations used before the campaign period), net of campaign expenditures, are subject to income tax with prescribed ITR forms and deadlines and no further deductions. Failure to file the SOCE with COMELEC makes the entire amount subject to income tax. Contributions duly reported to COMELEC and spent during the campaign period are exempt from donor's tax, while corporate donations violating Sec. 36(9) of the Corporation Code are subject to donor's tax and are not deductible.