Two-time gold medalist Carlos Yulo and boxing bronze medalists Nesthy Petecio and Aira Villegas pay a courtesy call to Speaker Ferdinand Martin Romualdez shortly before the entire Philippine delegation to the 2024 Paris Olympics were honored during a Congressional Reception. (Photo from the Office of Speaker Ferdinand Martin Romualdez)
MANILA, Philippines — A bill that seeks to exempt cash grants received by national athletes and coaches from taxation has been approved on second reading at the House of Representatives.
During the session on Wednesday, House Bill (HB) No. 10723 — a consolidation of six proposals — was approved via viva voce.
If signed into law, the measure will amend Republic Act No. 10699 or the National Athletes and Coaches Benefits and Incentives by inserting a new provision, named Section 4-A.
“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 as defined in this Act, including those received by their respective coaches, shall be exempt from any and all national or local taxes, fees and charges, subject to rules and regulations to be issued by the Secretary of Finance,” the bill reads.
“Provided, however, that donations, gifts, endowments and contributions made prior to the competition itself and directly and exclusively used to fund training and competition-related expenses, as well as incentives, rewards, bonuses and other forms of emoluments received by competing or winning national athletes and coaches, shall be considered as allowable deductions from gross income for purposes of computing the taxable income of the donor in accordance with the provisions of the National Internal Revenue Code of 1997, as amended,” it adds.
The tax exemption will be retroactive, starting from January 2024.
The approval of the bill on second reading coincides with the Congressional Reception for the Philippine delegation to the 2024 Paris Olympics, where House officials led by Speaker Ferdinand Martin Romualdez thanked the athletes for making the country proud.
Aside from the resolutions and citations for the Olympians, the House provided over P14 million for two-time gold medalist Carlos Yulo, P2.5 million each for bronze winners Nesthy Petecio and Aira Villegas, and P500,000 each for all athletes who participated in the event.
During the Congressional Reception, Romualdez apologized to the athletes who faced hardships during the Olympics, saying that the government should give more support to sports by coordinating with athletes and sporting officials.
He assured the athletes that the House would review laws, particularly R.A. No. 10699.
Romualdez also previously assured athletes that the House would continue to support sports so that the country could develop more athletes like Yulo.
Last Aug. 5, Romualdez said Yulo’s victories at the 2024 Paris Olympics – a gold in the men’s artistic gymnastics final and another gold in the men’s vault finals – show the potential of the country’s athletes.
READ: Romualdez vows House to continue backing PH sports programs, athletes
READ: Gymnast Carlos Yulo gives PH its second Olympic gold
Yulo and other athletes are also set to receive incentives from private companies and government corporations.
On Aug. 6, the Philippine Amusement and Gaming Corporation (Pagcor) said it is mandated to provide a cash grant of P10 million per gold medal won at the Olympics. This means Yulo would get P20 million, Pagcor Chairperson Al Tengco said.
READ: Carlos Yulo will get P10M per Olympic gold medal – Pagcor