Taxation of campaign contributions

THE official campaign period for the May 2022 national and local elections will start soon and candidates will be, or perhaps have already started, soliciting campaign contributions.

The giving of campaign contributions is recognized under Batas Pambansa 881 or the Omnibus Election Code of the Philippines. Under Section 94 (a) of the code, the term "contribution" includes a gift, donation, subscription, loan, advance or deposit of money or anything of value or a contract, promise or agreement to contribute, whether legally enforceable, made for the purpose of influencing the results of the elections. It does not include services rendered without compensation by individuals volunteering a portion or all of their time on behalf of a candidate or political party. It also includes the use of facilities voluntarily donated by other persons, the money value of which can be assessed based on rates prevailing in the area.