Facade of the House of Representatives. | PHOTO: Official website of the House of Representatives / congress.gov.ph
MANILA, Philippines — Tax exemption for cash grants and prizes received by national athletes and coaches is one step closer to becoming a law after the House of Representatives approved House Bill (HB) No. 10723 on the third reading.
During the plenary session on Wednesday, 203 lawmakers voted in favor of approving HB No. 10723, while none of the solons present objected or abstained.
If enacted, the proposed 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.
HB No. 10723 was approved on second reading last Aug. 14 after the Philippine delegation to the 2024 Paris Olympics visited the House for a Congressional Reception led by Speaker Ferdinand Martin Romualdez.
READ: House OKs bill exempting athlete’s rewards from taxation on 2nd reading
During the program, cash rewards were given to the delegation.
Olympic double gold medalist Carlos Yulo received P14 million.
Boxers Nesthy Petecio and Aira Villegas, meanwhile, each received P2.5 million for bagging a bronze medal in their respective events.
The rest of the participants got a P500,000 cash grant.
In his speech at the Congressional Reception, Romualdez also apologized to the athletes who faced hardships before and during the Paris Olympics, saying the government should give more support to sports by coordinating with athletes and sporting officials.
READ: Romualdez apologizes to PH athletes who faced tough start
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.
Yulo and other athletes are also set to receive incentives from private companies and government corporations.
Last 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