RMC No. 16-2025 — Tax compliance reminders for the May 12, 2025 National and Local Elections Digest | Full Text | Annex

(REPUBLIC OF THE PHILIPPINES

Bringing In Revenues for Nation-Building BUREAU QF INTERNAL REVENUE DEPARTMENT OF FINANCE National Gffice Quezon City Building Date: FEB 2 6 7025 PILIPINAS Bagong

REVENUE MEMORANDUM CIRCULAR NO. 0_1 6 - 2 0 2 5

SUBJECT:Tax Compliance Reminders for the May 12, 2025 National and

Local Elections

TO: All Internal Revenue Officials, Employees and Others Concerned

This Circular is being issued to reiterate and modify Revenue Memorandum Circular (RMC) No. 97-2023 which reminds everyone, particularly those who are r running as candidates or participating in any other manner in the May 12, 2025 National and Local Elections, of their obligations under pertinent revenue issuances.

Q1 : Is it necessary for individuals filing a Certificate of Candidacy for National

registration fee? and Local Elections to register with the BIR and pay the corresponding

for filing a certificate of candidacy for any national or local elections. A candidate may, however, register with the BIR as a taxpayer under E.O. 98 A1 : No. BIR registration and payment of registration fee are not pre-requisites

he or she may use in government transactions. Under the Ease of Paying Taxes using BIR Form No. 1904 to get a Taxpayer Identification Number (TIN) which

Act, he or she shall not be reguired to pay the annual registration fee.

services for the campaign and election activities, have received donations and candidacy, what BIR-related requirements should they do? O2: If candidates become involved in business or accept donations and make A2: Candidates who later engage in business, have purchased goods and/or campaign contributions, or, in general, have income payments subject to withholding tax, must register or update their BIR registration details with the Revenue District Office where such candidate is registered. Pursuant to the campaign-related purchases or other financial activities after filing their RA FS 3 FL0L 53S E a INiG A G F MV

annual registration fee. Ease of Paying Taxes Act, such candidates are no longer required to pay the

Q3: What is the obligation of a candidate, political party, or contributor in relation to its campaign related income payments?

five percent (5%) creditable withholding tax pursuant to Revenue Regulations persons for their purchases of goods and services intended to be given as No. 11-2018. A3: Income payments made by political parties and candidates of any national and local elections, :on all their purchase of goods and services related to campaign expenditures, and income payments made by individuals or juridical campaign contributions to political parties and candidates shall be subject to

BIR National Office Bldg., Senator Miriam Defensor-Santiago Avenue, Diliman, Quezon City Trunkline: 8981-7000 ; 8929-7676 Website: www.bir.gov.ph

Q4: What records should all candidates maintain?

A4: All candidates must maintain a record of contributions, donations, and expenditures, which will be used for the Statement of Contributions and Expenditures submitted to COMELEC pursuant to RR No. 8-2009.

Q5: If candidates receive donations or campaign contributions, what are the required documentation?

in kind, it shall be valued at fair market value. purchase from the RDO where they are registered, the Non-VAT BIR Printed Invoicest to be issued for every contribution in cash or kind. For contribution A5: All candidates receiving donations and campaign contributions shall

Q6: Are there penalties for non-compliance with BIR requirements?

A6: All candidates who fail to register and comply with the requirements of the BIR will be subjected to penalties under existing laws and issuances.

accordingly. All revenue issuances inconsistent herewith are hereby repealed or amended

as wide publicity as possible. All internal revenue officials and employees are hereby enjoined to give this Circular

This Circular shall take effect immediately.

ROME D. LUMAGUI, JR nanissioner of Internal Revenue

K-1-JKE

i iKEAU OF INTERNALREVEN NROS MANAGEMENT DIVISION

FEB 2 6 2025

admin unit... oh M VdU

1 Upon the effectivity of the Ease of Paying Taxes Act, only duly registered sale or commercial invoices are required to be issued.