BIR: Hidilyn’s cash rewards tax-free
THE Bureau of Internal Revenue (BIR) assured Congress that all donations, rewards and pledges to be given to Olympic Gold medalist Hidilyn Diaz are tax-exempt.
The BIR clarified that Diaz will not be paying any tax obligations from the pledges, mostly coming from the private sector, she will be receiving, which already amounts to P72.5 million.
Weightlifter Diaz, is the first Filipino athlete to win Olympic Gold since the country joined the prestigious sports competition 97 years ago.
The issue of tax liabilities has been discussed during a public hearing by the committee on ways and means.
On the query of committee chairman and Albay Rep. Joey Salceda, the BIR responded that they will only subject the donor to donor’s taxes, and that the pledges will not be part of the taxable income of Diaz or the other Olympians.
“I say this because the tax code is not very clear as to what qualifies as ‘bequests.’ I am not so sure what basis BIR will use, because the tax code is unclear on this matter, and the BIR has not issued a revenue regulation either,” Salceda said.
“But at least we have BIR on record saying that our national athletes will not pay taxes on the pledges. That is for sure,” Salceda added.
Meanwhile, the Hidilyn Diaz law was “approved by consensus” in the tax panel.
A substitute bill to House Bill No. 9891, or the Hidilyn Diaz Law, entitled, An Act Exempting Monetary Donations and Rewards In Favor of National Athletes and Coaches from Taxes, Amending for the purpose Section 4 of Republic Act No. 10699, is being readied.
The said bill was authored by Salceda, Deputy Speaker and 1PACMAN Rep. Mikee Romero and Quezon City Rep. Precious Hipolito Castelo and Deputy Speaker Mikee Romero.
