The House of Representatives on Wednesday overwhelmingly approved on the third and final reading a bill exempting 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 brands and 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.
Parañaque Second District Rep. Gus Tambunting, one of the authors of HB 10723, hopes that tax-free donations and gifts would encourage more Filipino athletes to excel in their chosen sports.
“It is clear that Filipino athletes are world-class, and our performance in international competitions affirms this. That is why now more than ever, it is imperative that Congress does its part in pro-actively supporting our athletes that will help them attain their full potential,” he said.
Quirino Lone District Rep. Midy Cua, sponsor of the measure, is optimistic about the bill’s impact on the country’s sports development.
“We believe that the best way forward is to incentivize preparation. Champions are not made overnight,” she said. (PNA)
