House OKs tax-free athletes' rewards, incentives bill on 2nd reading

MANILA – A measure exempting from taxes all incentives, rewards, and donations to national athletes competing in international sports competitions hurdled second reading at the House of Representatives.

During the plenary session on Wednesday, the chamber passed via voice vote House Bill (HB) 10723, which proposes to amend Republic Act (RA) 10699, or the National Athletes and Coaches Benefits and Incentives Act.

The proposed amendment seeks to exempt incentives, rewards, bonuses, and other forms of emolument, as well as donations, gifts, endowments, and contributions received by national athletes who compete or win in international sports competitions from any national taxes, fees, and charges.

The incentives, rewards, and other emoluments received by the athletes' coaches shall also be exempted from taxes.

The bill provides for the retroactivity of tax exemptions to cover incentives and rewards received by national athletes and coaches beginning Jan. 1, 2024.

The bill aims to encourage donations to fund training and competition-related expenses of national athletes competing in international competitions by granting donors incentives in the form of tax exemptions and corresponding deductions from gross income.

Albay Rep. Joey Salceda, author of the bill, said the measure proposes to exempt not just the prizes that are handed out by brands and companies after the win, but also donations towards their training one year before the competition.

Apart from exempting donations one year prior to the date of competition, Salceda said donations coursed through the Philippine Sports Commission or the Philippine Olympic Committee shall be made exempt from donations regardless of time.

"It is mere tokenism, it is mere public relations, to ride the bandwagon when the victory has already been achieved. What we need to incentivize is the investments being made on the athletes who are still working on winning medals for the country," he said. (PNA)