BIR reminds 2025 candidates: register, issue invoices, and pay taxes on excess campaign funds

Those who ran for public office should not run from their tax obligations.

This was the message to candidates and political parties from the Bureau of Internal Revenue (BIR), which reminded all individuals and groups who ran in the 2025 elections that they are subject to tax regulations and must comply with key requirements as part of their duties as candidates for public office.

In a television interview, BIR Commissioner Romeo Lumagui Jr. stressed that “lahat ng mga tumatakbo, mga kandidato, mga political parties, at ang mga party-list kinakailangan nilang mag-rehistro sa BIR kung sila ay tumatanggap ng mga contributions at gumagastos sa kanilang kampanya.”

“Kinakailangan na mag-rehistro yan at kinakailangan pag nagbabayad sila sa kanilang mga suppliers ay kinakailangan nilang mag-withhold ng 5% dun sa kanilang suppliers.”

Lumagui emphasized that all candidates and political organizations must issue invoices for contributions they receive, whether in cash or in kind.

The lawyer explained that “kinakailangan nag-apply yan ng mga non-VAT invoices dahil kinakailangan nilang mag-issue ng resibo––lahat ng mga kandidato at political parties––ng invoice nila dun na sa mga nag-contribute sa kanila whether cash or in-kind, kinakailangan nilang isyuhan yan ng invoice.”

He added that candidates must keep track of their expenses and submit detailed reports not just to the Commission on Elections but also to the BIR.

“Tapos doon sa mga expenses nila, kinakailangan nilang ilista lahat yan at isasubmit din doon sa Statement of Contribution and Expenditures sa Comelec, pati na rin dito sa aming ahensya para makita natin na lahat kung compliant ang kanilang obligasyon dito,” said the BIR chief.

Lumagui said that while candidates and parties are allowed to keep excess campaign contributions, they must remember to pay taxes on these. According to him, “pagka sobra naman ang natanggap nila na mga contributions sa mga ginastos nila, kinakailangan nilang bayaran ang income tax patungkol dito sa sobrang natanggap nila.”

Candidates and parties who fail to comply with these requirements could face tax evasion charges, Lumagui warned, and in certain cases, non-compliance may even serve as grounds for disqualification. ###