Political parties are regularly provided with funds administered by the Election Management Body based on the amount set by the National Parliament. However, the fund provided is restricted only to political parties with representation in Parliament. Out of the total amount proved by the National Parliament, 50% is equally divided among the political parties with parliamentary representation while the other 50% is allocated based on the proportion of seats won. In addition to the public funds received, political parties are also exempted from paying taxes, legal charges and court costs.
Donations from foreign interests and corporate bodies and national corporate bodies are strictly prohibited to political parties but no such provision exists regarding individual candidates. No provision also exists concerning donations coming from corporations with government contracts or partial government ownership to candidates but it is prohibited to political parties. Trade Unions are, likewise, restricted in donating funds only to candidates. Donations received by political parties must certified through a written document which includes the amount donated together with the signature of the taxpayer and the party official who receives the amount. No limit has been set for the donations. However sources from philanthropic or religious activities, employer’s associations and foundations are prohibited.
Political parties are required to annually report their finances which shall be submitted 45 days before the end of the financial year. This shall be made public by the election management body 20 days after comments from auditors have been received.
Political Finance Date for East Timor. (n.d.). Retrieved from International IDEA: http://www.idea.int/political-finance/country.cfm?id=222