RMC No. 97-2023 — Provides tax compliance reminders to all candidates and other participants in any national or local elections, including Barangay or Sangguniang Kabataan (SK) Elections

BUREAU OF TSTERNALREVENUE

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE SEP 22'2023 QORDOYA 3.00pm

National Office Building Quezon City RECORDS MGT.DIVISION SEP 2 2 2023

REVENUE MEMORANDUM CIRCULAR NO._97- 20?2

SUBJECT Tax Compliance Reminders to All Candidates and Other Participants in

Any National or Local Elections,Including Barangay or Sangguniang Kabataan (SK) Elections

TO All Internal Revenue Officers and Others Concerned

This Circular is being issued relative to Revenue Regulations (RR) No.8-2009 and

pertinent revenue issuances. elections in the country, including Barangay or SK elections, of their obligations under Revenue Memorandum Circular (RMC) No. 31-2019 to remind everyone, particularly those who are running as candidates or participating in any other manner in any national or local

Ql:Is it necessary for individuals filing a certificate of candidacy for national or local elections, including Barangay or SK elections, to register with the BIR and pay the corresponding registration fee?

Al: No.BIR registration and payment of registration fee are not prerequisites for filing a certificate of candidacy for any national or local elections including Barangay or SK elections. A candidate may,however,register with

transactions. He or she shall not be required to pay the annual registration fee Identification Number (TIN which he or she may use in governmeni the BIR as taxpayer under E.O.98 using BIR Form No.1904 to get a Taxpayer

O2: If candidates become involved in business or accept donations and make candidacy,what BIR-related requirements should they do? campaign-related purchases or other financial activities after filing their

A2: Candidates who later engage in business, have purchased goods and/or

RDO where such candidate is registered and pay the corresponding registration fee. 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

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

A3: Income payments made by political parties and candidates of any national

of goods and services related to campaign expenditures, and income payments and local elections, including Barangay and SK elections, on all their purchase

pursuant to RR No. I1-2018. services intended to be given as campaign contributions to political parties and candidates shall be subject to five percent (5%) creditable withholding tax made by individuals or juridical persons for their purchases of goods and

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?

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

in kind, it shall be valued at fair market value.

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

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

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

a wide publicity as possible: All internal revenue officers and employees are hereby enjoined to give this Circular

This Circular shall take effect immediately

D.LUMAGUI,JR mssioner of Internal Revenue 014440

RNAL REVENUE

SEP 22 2023 CORONA 3:00pm

RECORDS MGT.DIVISION