Bill exempting donations, rewards for Olympic medalists from taxes filed at Senate

Senate committee on ways and means chairperson Senator Pia Cayetano has filed a measure seeking to exempt from any form of taxes the reward and donations to be given to Olympic medalists.

Cayetano filed Senate Bill 2341 or “An Act Exempting Donations and Rewards in Favor of Olympic Medalists and their Coaches from Taxes, amending for the purpose the Republic Act No. 10699.”

In her proposed measure, Cayetano aims to add a new section in the RA 10699 as follows:

“Sec. 10-A. Tax Exemption. The cash incentives, bonuses, rewards, and other forms of emoluments received by Olympic medalists and their coaches, whether the same is from public funds or private persons or entities, shall be exempt from any and all taxes, fees, and charges levied by any government agency, local or national, subject to the rules and regulations to be issued by the Secretary of Finance, as recommended by the Commissioner of Internal Revenue…”

The senator also aims to make the tax exemptions retroactive on national athletes and coaches who won in the 2020 Summer Olympic Games in Tokyo, Japan.

Similarly, House Committee on Ways and Means chairperson Joey 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.  

Diaz, after her unprecedented feat at the Olympics, is expected to receive millions in cash rewards on top of other in-kind benefits granted by private companies, including a house and lot, a condominium unit, and vehicles.

The Bureau of Internal Revenue, for its part, already clarified that part of Diaz’s cash rewards are already tax exempted under existing laws and that it is the donors who are in charge of paying taxes for the reward they have pledged to give Diaz. 

Filipina boxer Nesthy Petecio, who finished her 2020 Olympics bout with a silver medal, is also set to receive P17 million in cash rewards plus, condominium unit, house and lot, and free flights. — Ted Cordero/RSJ, GMA News