Poll watchers with annual salary less P250K to be exempt from withholding tax

The withholding tax on honoraria and travel allowances of poll officers in the upcoming Barangay and Sangguniang Kabataan (SK) elections will now be waived for those earning less than 250,000 a year.

In a resolution by the Commission on Elections (Comelec) dated May 11, the agency said poll watchers with an annual net taxable compensation not exceeding P250,000 will be exempted from paying withholding tax.

The Bureau of Internal Revenue (BIR) earlier ruled to impose a 5-percent withholding tax on honoraria and allowances of poll watchers in the upcoming elections.

The Comelec noted, however, that there are select exemptions but those seeking for a tax exemption should secure a certification of qualification from the BIR.

"[T]o determine if a person is exempted from withholding tax on compensation, said person is required under rules and regulations of the Bureau of Internal Revenue to execute a Sworn Declaration in the form prescribed by the BIR that his/her net taxable compensation for the year will not exceed Two Hundred Fifty Thousand Pesos," the resolution read.

The resolution was signed by Comelec Acting Chairman Al Parreño and Commissioner Sheriff Abas.

Commissioners Luie Tito Guia and Socorro Inting also voted in favor of the resolution, while Commissioner Rowena Amelia Guanzon was on official business.

In a separate statement, Department of Education Secretary Leonor Magtolis Briones said the tax refund will be given out to poll watchers in the next two weeks.

"The TRAIN Law specifies that those with annual income below P250,000 will be tax exempt. Computations were made: it will range from P300 to P350," she said.

"In two weeks time, that will be returned once our teacher-volunteers submit and have their certification of salary grade verified," she added. — Jon Viktor D. Cabuenas/BM, GMA News