House OKs bill granting tax exemptions on rewards for PH athletes, coaches

The House of Representatives approved on third and final reading on Wednesday the bill granting tax exemptions on rewards and incentives for Filipino athletes and their coaches.

House Bill 10723 was approved by 203 lawmakers with no opposition or abstentions.

The bill exempts “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,” from national or local taxes, fees, and charges.

This exemption, according to the bill, also includes those received by their coaches.

In addition, the bill states that donations, incentives, and rewards given to the athletes and coaches prior to the competition and exclusively used to fund training and competition-related expenses will be considered allowable deductions from gross income for purposes of computing the taxable income of the donor.

Further, the bill provides that 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.

The required period to avail of the tax exemptions, however, does not apply to donations, rewards, and contributions made through the Philippine Sports Commission (PSC), the Philippine Olympic Committee (POC), or the Philippine Paralympic Committee (PPC).

Speaker Martin Romualdez, in a statement, said the proposed measure is a fitting reward for athletes who brought pride and honor to the country.

''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,” Romualdez said.

Yulo, a gymnast, is the first Filipino to win two Olympic gold medals after he ruled the floor exercise and vault competitions at the Paris Olympics this month.

Weightlifter Diaz became the first ever Olympic gold medalist for the Philippines when she topped the 55 kg division at the Tokyo Olympics in 2021. Diaz also won silver at the 2016 Rio Olympics.

“It is clear that Filipino athletes are world-class. It is imperative that Congress does its part in proactively supporting our athletes so they can realize their full potential,” said Parañaque lawmaker and one of the bill’s authors, Gus Tambunting.

“Champions are not made overnight. We believe that the best way forward is to incentivize preparation. Thus, in addition to our previous proposal, we have included the exemption from tax of donations for the entire training of our athletes, provided that such donations are made through the POC, PSC, and PPC,” added Quirino lawmaker Midy Cua, also one of the authors. — VBL, GMA Integrated News