Salceda files bill seeking to exempt national athletes’ rewards from tax

House committee on ways and means chairperson Joey Salceda on Wednesday proposed a measure seeking to exempt the rewards of weightlifter Hidilyn Diaz and other athletes from all forms of taxes and other fees.

Salceda filed House Bill 9891 or the Hidilyn Diaz Act of 2021, which aims to exempt monetary donations and rewards in favor of national athletes and coaches from taxes, amending for the purpose Section 4 of Republic Act No. 10699.

"I run after big-time smugglers and tax evaders. The foregone taxes are just too small to even both collecting, not to mention diminishing the honor and national pride our athletes have gifted us," Salceda said in a statement.

"I’m not willing to rain on national pride by insisting that we collect taxes on our national athletes. Neither should the law. So we will change the law,” Salceda added.

The Albay lawmaker said the tax panel would deliberate on the measure “without delay” to ensure that Diaz and other winning athletes, such as Nesthy Petecio, will be able to enjoy the tax benefits as soon as possible.

The National Athletes and Coaches Benefits and Incentives Act or Republic Act No. 10699 defines national athletes as "athletes including persons with disabilities who are Filipino citizens, members of the national training pool, recognized and accredited by the Philippine Olympic Committee (POC) and the PSC, including athletes with disabilities (AWD) who are recognized and accredited by the NPC PHIL and the PSC and who have represented the country in international sports competitions[.]"

Senate resolution

The Senate, meanwhile, will study crafting a resolution that seeks tax exemptions for Diaz following her historic gold medal at the 2020 Olympics.

“May I request that the committee of rules study the possibility of filing a resolution urging the Bureau of Internal Revenue to exempt Hidilyn Diaz from taxes from her winnings as an Olympic gold medalist,” Senate President Vicente Sotto III manifested during Senate’s Wednesday session.

Senate Majority Leader Juan Miguel Zubiri, who chairs the Senate rules committee, said they will consider the resolution and see if there are legal implications and possible violations of law on the intent of the resolution.

Diaz conquered the women's 55-kilogram weightlifting competition at the Tokyo 2020 Olympic Games.

She finished with a total score of 224 kg, lifting 97 in the snatch and 127 in the clean and jerk to outduel China's Liao Qiuyun for the gold.

Rewards

In an interview with Arnold Clavio on “Unang Balita,” Philippine Olympic Committee (POC) president Bambol Tolentino said Diaz can expect to receive the full P10 million cash incentive from the national government tax-free, in accordance with RA 10699.

However, the POC chief had yet to say the same for Hidilyn’s other rewards coming from private entities.

“Pinapa-ano ko na po kung magfa-file ako ng exemption po for that. Sa donor’s tax,” he said.

“‘Yung sa gobyerno, ‘yun pong galing sa national government na 10 million, five and two, wala na pong tax ‘yun. But those coming from private, baka po taxable, so we will be filing an exemption for that,” he added.

The MVP Sports Foundation has pledged to give an additional P10 million for Diaz’s win.

Tolentino also said in a Philippine Sportswriters Association forum that business tycoon Ramon S. Ang will give P10 million for every gold in the Tokyo 2020 Olympics.

Meanwhile, athlete, sports patron, and Representative Mikee Romero also pledged P3 million for the gold medal winners in Tokyo, summing up her initial prizes to at least P33 million.

Aside from cash, Tolentino had also said Diaz is also set to receive, among others, a house and lot in Tagaytay and a condominium unit in Eastwood City.

'Unprecedented honor'

Salceda acknowledged that the honor brought by Filipino athletes is immense and historic.

"So unprecedented is this honor that it appears our laws were unable to anticipate the outpouring of material solidarity from different sectors of society for our winning athletes and coaches,” he said.

“In view of the need to recognize this historic win, and to express the State’s solidarity and congratulations for our winning athletes and coaches, this bill will exempt rewards for national athletes and coaches who compete or win in international sports competitions from any and all taxes, fees, and charges,” he added.

Salceda said the measure would also guarantee that failure to issue revenue regulations providing the implementing mechanisms for the exemption will not preclude the provision from being implemented. — BM, GMA News