BSKE bets advised to register with BIR

BSKE bets advised to register with BIR

THE Bureau of Internal Revenue-Davao Region (BIR-Davao) announced on Monday morning, September 18, 2023, that 2023 Barangay and Sangguniang Kabataan Elections (BSKE) candidates, particularly those who have businesses need to update their BIR registration for withholding taxes in pursuant to RR No. 8-2009, as amended by RR No. 10-2009.

"Isip pahimangno o reminders sa mga candidates, political parties, party lists, and campaign contributors, obligasyon nila magpa-rehistro o mag-update sa ilahang registration sa BIR office bahin sa ilahang candidacy (As a reminder to candidates, political parties, party lists, and campaign contributors, they are obliged to register or update their registration at the BIR office regarding their candidacy),” Maria Rosal Saludares, Revenue Officer II, BIR RDO-East Davao City, said in a radio interview.

However, the official clarified that in the case of BSKE, candidates should individually and physically file their certificate of registration in their respective Revenue District Office (DO) having jurisdiction over their head office or principal office.

Candidates are then required to accomplish BIR form 1901, a copy of the Certificate of Candidacy (COC), and valid IDs. On the other hand, political parties/party list groups need also to accomplish BIR form 1903 and submit a copy of the COC.

The official also said that candidates/groups that purchase goods or services intended to be given as campaign contributions to political candidates shall be subject to a 5% creditable withholding tax (CWT), which is imposed on candidates and groups. This is still in relation to the BIR RR 11-2018. 

Covered by the expanded withholding tax are media services, printing jobs, entertainment fees, among others.

Withholding tax plays an important role since expenses that were not subjected to the 5% CWT are not considered utilized campaign funds; hence, cannot be claimed as deductions against the campaign.

Failure to follow and adhere to the requirements of the BIR will face penalties under the Revenue Memorandum Order (RMO) No. 7-2015 which means that the higher the basic tax you fail to pay, the higher the amount you will pay for the compromise penalty which ranges from P2,000 to P5 million. DEF

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