The Bureau of Internal Revenue (BIR) on Thursday (July 29) said weightlifting gold-medalist Hidilyn Diaz is exempted from paying taxes for her cash incentives following her victory at the Tokyo Olympics.
Diaz’s incentives have already reached at least P72.0 million, including the P10 million from the national government through Republic Act 10699 or the National Athletes and Coaches Benefits and Incentives Act.
“The P10 million cash incentive mandated under Republic Act No. 10699, shall be considered an exclusion from gross income by virtue of Section 32(B)(7)(d) of the Tax Code,” the BIR said in a statement.
“The donations given to her by businesses, private individuals and entities shall also be excluded from the computation of her gross income under Section 32(B)(3) of the Tax Code,” it added.
BIR Deputy Commissioner Marissa O. Cabreros said in an interview that the incentives are not taxable for income tax purposes since “those are considered as exclusions from gross income.”
Senate Minority Leader Franklin M. Drilon urged the BIR “to issue a clarification and settle the matter in favor of the athletes.”
House Deputy Speaker Rep. Mikee Romero also called on the passage of resolution to exempt both the donor and beneficiary from “any form of tax” related to Diaz’s “winnings.”
The country’s Tax Code imposes a 6% tax on donors on gifts in excess of P250,000 made within each calendar year.
Below are incentives and rewards to the Olympic winner:
- Residential condominium unit in Eastwood, Quezon City pledged by Megaworld worth P14-M
- House and lot at any PHirst Park Homes community of her choice pledged by Century Properties worth P4-M
- P10-M cash incentive from the government through Republic Act 10699 or the National Athletes and Coaches Benefits and Incentives Act
- P10-M pledged by San Miguel Corporation President and CEO Ramon Ang
- P10-M pledged by business tycoon Manny Pangilinan through the MVP Sports Foundation
- P3-M pledged by Deputy Speaker Mikee Romero of 1-PACMAN Party-list
- P2.5-M from the local government of Zamboanga City
- P5-M cash and free fuel for life, pledged by Siklab Atleta Sports Foundation head and Phoenix Petroleum chair Dennis Uy
- P6-M from 118 representatives who committed to give via salary deduction, the total is expected to reach P6 million.
- P3-M pledged by President Duterte
– Report from Naomi Tiburcio/AG-rir
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