By Jun Ramirez
As the midterm vote count is almost over, the Bureau of Internal Revenue (BIR) has reminded both winners and losers as well as political parties to submit their respective Statement of Contributions and Expenditures (SOCE) to the Commission on Elections (COMELEC) on or before June 13.
Revenue Deputy Commissioner for Operations Arnel Guballa said donor’s and income taxes will be collected from contributions and donations received by political bets and parties that failed to submit the documents as mandated by Revenue Memorandum Circular 31-2019.
The filing of SOCE is required by the Omnibus Election Code, 30 days after the polling exercise.
The revenue official said the SOCE must include supporting documents like cash receipts and disbursement books, including the five percent creditable withholding tax on purchases of goods and services used during the campaign.
The accounting records shall be kept within three years upon filing and made readily available to authorized revenue officers for audit purposes.
Guballa stressed that contributions spent before and after election period as declared by the COMELEC will be subject to donor’s tax and can’t be considered political contributions.
“Only contributions or donations utilized during the election period are exempted from donor’s tax,” Guballa stated.
He added that contributions in kind like vehicles and other election materials must indicate the fair market value.
If they do not return the contributions to the respective donors, donations received will be considered as extra income of the candidate which will be subject to income tax.