REVENUE MEMORANDUM CIRCULAR NO. 16-2025 issued on February 26, 2025 provides Tax Compliance Reminders for the May 12, 2025 National and Local Elections.

BIR registration and payment of registration fee are not pre-requisites for filing a certificate of candidacy for any national or local elections. A candidate may, however, register with the BIR as a taxpayer under Executive Order No. 98 using BIR Form No. 1904 to get a Taxpayer Identification Number which he or she may use in government transactions. Under the Ease of Paying Taxes (EOPT) Act, he or she shall not be required to pay the annual registration fee.

Candidates who later engage in business, have purchased goods and/or 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 Revenue District Office (RDO) where such candidate is registered. Pursuant to the EOPT Act, such candidates are no longer required to pay the annual registration fee.

Income payments made by political parties and candidates of any national and local elections, on all their purchase of goods and services related to campaign expenditures, and income payments made by individuals or juridical persons for their purchases of goods and services intended to be given as campaign contributions to political parties and candidates shall be subject to five percent (5%) Creditable Withholding Tax pursuant to Revenue Regulations (RR) No. 11-2018.

All candidates must maintain a record of contributions, donations, and expenditures, which will be used for the Statement of Contributions and Expenditures submitted to the Commission on Election pursuant to RR No. 8-2009.

All candidates receiving donations and campaign contributions shall purchase from the RDO where they are registered, the Non-VAT BIR Printed Invoices to be issued for every contribution in cash or in kind. For contribution in kind, it shall be valued at Fair Market Value.

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