The Bureau of Internal Revenue (BIR) Oplan is for political candidates must be the role model in complying with their tax obligations.
BIR is mandated under Revenue Regulations No. 8-2009 dated October 22, 2009, to strictly monitor the withholding tax payments of five per cent on campaign-related expenditures of political parties, campaign contributors and candidates for the forthcoming local and national elections.
The five per cent creditable withholding tax is not a tax on the candidate, political party or contributor but a tax on the income of the supplier of goods and services. It is collected through the candidates, political parties and contributors by the latter deducting the tax from the agreed transaction price upon making the payment and remit such amount to the BIR. (BIR/PIA)
