No taxes for 'Golden Boy' Yulo – BIR
2024-Aug-27 09:00
TAX FREE. Paris Olympics double-gold medalist Carlos Yulo shows his medal to the fans during the Filipino Olympians' welcome parade in Manila on Aug. 14, 2024. Bureau of Internal Revenue Commissioner Romeo Lumagui Jr. on Monday (Aug. 26) said Paris Olympics double-gold medalist Carlos Yulo does not have to pay taxes for the prizes, awards, rewards, gifts, and donations he received by his historic performance. (PNA/Avito C. Dalan)
MANILA – Gymnast Carlos Yulo, the country's first double-gold medalist in the 2024 Paris Olympics, does not have to pay taxes for the prizes, awards, rewards, gifts, and donations he received by virtue of his historic performance, Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. said on Monday.
In a news release, Lumagui said the National Internal Revenue Code (NIRC), as amended, allows for Yulo to receive these cash and properties without paying taxes.
"The BIR congratulates our two-time Olympic gold medalist for his performance in the 2024 Paris Olympics. You are an inspiration to the men and women of the BIR," Lumagui said.
He said under Section 32(B)(7)(d) of the NIRC expressly all prizes and awards granted to athletes in local and international sports tournaments and competitions held in the Philippines or abroad and sanctioned by their respective national sports associations shall be exempt from income tax.
"'Therefore, all prizes, awards, and rewards granted to Yulo by the Paris 2024 Organizing Committee as well as the Philippine Government pursuant to existing laws, such as, but not limited to, Republic Act (RA) No. 10699, or the "National Athletes and Coaches Benefits and Incentives Act', are exempt from income tax," he added.
Lumagui said Section 32(B)(3) of the NIRC also provides that the value of property acquired by gift, bequest, devise, or descent shall be excluded from the gross income of the recipient and, therefore, exempt from income tax.
"The rewards, gift or donations (in any form) given to Yulo by private entities, or individuals clearly fall under this exemption. Therefore, Yulo need not declare these as part of his gross income, and he shall not be liable to pay any income tax thereon," he added.
He also said Section 98 of the NIRC provides that the donee or receiver is not liable to the donor's tax.
On Aug. 21, the House of Representatives passed on the third and final reading of House Bill 10723 exempting Filipino athletes and their coaches from paying taxes on the incentives, rewards, bonuses, and other forms of emoluments they have received for winning medals in international competitions.
For winning two golds in floor exercise and vault in men's gymnastics in Paris, Yulo received P20 million through the Philippine Sports Commission under Republic Act 10699 or the National Athletes, Coaches, and Trainers Benefits and Incentives Act which provides P10 million cash incentive for an Olympic medalist.
President Ferdinand R. Marcos Jr. matched the incentives provided by the law, giving Yulo an additional P20 million – P10 million for every gold medal.
He also handed a total of P4 million each for bronze medalists – boxers Nesthy Petecio and Aira Villegas, including the law-mandated P2 million for an Olympic bronze medal, and P2 million each for all Paris Olympians, except for Yulo, from the Office of the President and Philippine Amusement and Gaming Corporation (PAGCOR).
Yulo also received cash incentives from private groups and individuals, including a fully furnished three-bedroom condominium worth P35 million and P3 million in cash from Megaworld Corp.; P10 million from MVP Sports Foundation; P5 million from ArenaPlus; P14 million from House of Representatives and some members; and two cars – Toyota Land Cruiser Prado and Cherry Tiggo 7 Pro SUV. (PNA)