THE House of Representatives on Wednesday approved on the third and final reading a measure that exempts Filipino athletes and their coaches from paying taxes on the incentives, rewards, bonuses and other forms of emoluments they have received for winning medals in international competitions.
All 203 lawmakers voted in favor of House Bill (HB) 10723 which Speaker Ferdinand Martin Romualdez said is among various initiatives in Congress to enhance benefits to Filipino athletes who brought pride and honor to the country.
Once signed and enacted into law by President Ferdinand R. Marcos Jr., HB 10723 would amend Republic Act 10699 or the National Athletes and Coaches Benefits and Incentives Act.
The bill seeks not only to exempt rewards awarded by private companies following an athlete’s victory but also donations used for the preparation of national athletes one year before the tournament.
The bill exempts from national or local taxes, fees and charges “all incentives, rewards, bonuses and other forms of emoluments, as well as donations, gifts, endowments and contributions, whether from public or private persons or entities, received by national athletes who compete or win in international sports competitions”, including those received by their coaches.
Also, donations, incentives, and rewards given to the athletes and coaches prior to the competition and exclusively used to fund training and competition-related expenses ”shall be considered as allowable deductions from gross income for purposes of computing the taxable income of the donor.”
Under the bill, donors may avail of the tax exemption within one year before the competition entered into by the concerned athlete and coach and within three months after the international tournament.
However, the required period to avail of the tax exemptions does not apply for donations, rewards, and contributions coursed through the Philippine Sports Commission, the Philippine Olympic Committee, and the Philippine Paralympic Committee.
Earlier, Romualdez said the House is also contemplating the grant of lifetime monthly pension to Filipino athletes who would win medals in the Olympics, starting when they reach the age of 40.
“The honor our Olympians Carlos Yulo and Hidilyn Diaz gave our country is immeasurable and priceless, but we can acknowledge their hard work and triumph by way of benefits from the government,” he said.
