JAN.

28, 2014

NR # 3360

Independent bloc seeks tax exemption of athletes awards and prizes

The House independent bloc is seeking the granting of tax exemption for prizes and awards granted to Filipino athletes in internationally sanctioned sports competitions to allow them to fully enjoy these earnings and for the government to promote and encourage excellence in sports. The proposal is embodied in House Bill !"# or the proposed $Tax %ncentives for &rofessional 'thletes 'ct of (") * principally authored by +ep. ,ose 'tienza -&arty.list/ B0H'12 and co.authored by seven other members of the House independent bloc. 'tienza said there is an imperative need to amend the country3s laws to extend tax incentives to professional Filipino athletes who brought honor and pride to the &hilippines for which the only consolation the government could give is to insure the income or awards could be enjoyed to the fullest especially when the athletes3 $youth is gone and their work is done.* He said the recent tax controversy involving the country3s national treasure and boxing icon +ep. 4mmanuel &ac5uiao -6one 7istrict/ 8arangani2 serves as an eye opener to extend tax incentive to any Filipino professional athlete who competes in any sports tournament sanctioned by any international organization and recognized or certified as such by the &hilippine 8ports 9ommission/ as that extended to in amateur athletes under the tax code. $The declared 8tate policy apropos the vital role of sports in nation.building was initially given impetus by the passage earlier of +epublic 'ct :"#; as well as 8ec. ( B < of +' =;(;/ which however/ limited the incentives given therein to amateur athletes. %n this day and age/ even the %nternational >lympic 9ommittee has found good reason to allow participation of professional athletes in events formerly limited to amateurs. Thus/ the need to distinguish amateurs from professionals is no longer in vogue/* said 'tienza. To attain that 8tate policy/ 'tienza said all athletes are called upon to exert their best while the 8tate must in turn provide and grant ade5uate incentives apart from the prizes and awards. $The participation of these sports personalities in nation.building are of e5ual import and significance/* said 'tienza. House Bill !"#/ now pending at the House 9ommittee on ?ays and @eans chaired by +ep. @iro Auimbo -(nd 7istrict/ @arikina 9ity2/ provides the 8tate shall promote and encourage excellence in sports by providing tax incentives to professional athletes who bring honor and recognition to the country by winning %n internationally sanctioned sports competitions and tournaments.

The bill provides for further amendment of 8ection - (2 -B2 -<2 d of +' =;(;/ otherwise known as the Tax +eform 'ct of )::</ as amended/ so that all prizes and awards to amateur and professional athletes in local and international sports competitions and tournaments/ whether held in the &hilippines or abroad/ sanctioned by their national sports association or any recognized world or international sports associations/ shall not be included in gross income and shall be exempt from taxation under this title. The tax exemption shall apply to prizes and awards in all aforementioned competitions earned )" years prior to the effectivity of the proposed 'ct. Furthermore/ the tax incentives may be availed of or enjoyed by the winner.taxpayer who may have/ or in connection with any pending assessments/ tax cases or pending assessment charges or warrants and levy in the process of or yet to be implemented. The bill also provides that any taxpayer who otherwise would have been exempt as provided for in the proposed 'ct/ who has paid income tax for prizes or awards/ or both/ in internationally recognized competitions within the last )" years of the 'ct shall be entitled to apply for tax credit in accordance with the law. The bill is co.authored by +eps. Ferdinand @artin +omualdez -)st 7istrict/ 6eyte2/ 'leta 8uarez - rd 7istrict/ Auezon2/ 6ani @ercado.+evilla -(nd 7istrict/ 9avite2/ ,onathan dela 9ruz -&arty.list/ 'B'B'7'2/ Cictor >rtega -)st 7istrict/ 6a 0nion2/ &hilip &ichay -)st 7istrict/ 8urigao del 8ur2 and 7iosdado @acapagal 'rroyo -( nd 7istrict/ 9amarines 8ur2. - "2 rbb