THE prizes, awards and incentives of Olympic gold medalist Hidilyn Diaz should be exempted from taxes, according to Senate minority leader Franklin Drilon.
“All prizes, incentives and perks given to Hidilyn for winning the country’s first Olympic gold should be tax-exempt. However, the rules with regard to the treatment of prizes, awards and incentives received by Filipino athletes are not clear. It is time for the BIR (Bureau of Internal Revenue) to issue a clarification and settle the matter in favor of the athletes,” Drilon said Thursday.
“I urge the BIR to affirm the interpretation that all the awards and incentives should be tax-exempt. It will be an incentive for our athletes to do even better and inspire future Hidilyn Diazes who will give honor and pride to the nation,” he added.
He cited that under Section 32 (B) (7) (d) of the National Internal Revenue Code, all prizes and awards granted to athletes in local and international sports competitions and tournaments whether held in the Philippines or abroad and sanctioned by their national sports associations are excluded from gross income tax.
Hidilyn Diaz made history for the Philippines by winning the gold medal in the women’s 55-kilogram weightlifting competition at the Tokyo Olympics, which finally ended the country’s quest for a gold medal in the quadrennial Olympics after 97 years.
For winning in the Olympics, Hidilyn is set to receive a P10 million cash incentive based on Republic Act No. 10699, which became law during the Aquino administration. Aside from that, various companies have pledged to give cash incentives to Hidilyn for her historic win.
However, it is unclear whether BIR will tax Hidilyn’s prizes, specifically the cash incentives pledged by the private sector to Hidilyn.
Drilon said that he hopes the recent victory of Hidilyn Diaz in the Tokyo Olympics will pave the way for more benefits, including augmentation of their allowances and additional incentives.
“Consistent with the objectives of RA 10699, we must promote excellence in sports by looking after the welfare of national athletes and coaches competing for the country and by providing benefits and incentives for national athletes and other athletes who win in international sports competitions and bring honor and recognition to the country,” Drilon said.
Drilon recalled how Hidilyn trained with makeshift weights made out of broomsticks and duffel bags in preparation for the Tokyo Olympics.
“Her resourcefulness and resolve to win are admirable. Hidilyn Diaz has shown us that with heart and perseverance, the Filipino can emerge triumphant. We can prevail and overcome,” Drilon said.