The Department of Finance (DOF) is not open to proposals that seek special tax exemption for Olympic winners.
Carlos Dominguez, DOF secretary, also said donations given to first Filipino Olympic gold medalist Hidilyn Diaz are only subject to six percent donor’s tax, payable by the donor.
The finance chief was asked yesterday if the DOF would be amenable to proposals that aim to provide special tax exemptions for Olympic winners.
“No. All Philippine citizens and residents have an obligation to share in the cost of the provision of public goods to society,” Dominguez told reporters in a text message.
Following Diaz’s Olympic win, Albay Rep. Joey Salceda filed a bill that seeks to exempt rewards received by national athletes and coaches from taxes.
House Bill 9891 aims to exempt rewards, bonuses and other emoluments for national athletes and coaches from any and all taxes.
The Bureau of Internal Revenue (BIR) said in a statement the donations given to Diaz by businesses, private individuals and entities shall be excluded from the computation of her gross income under Section 32 of the Tax Code.
It presupposes, however, that the generous donors have paid the donor’s tax on these items, the BIR said.
“TRAIN (Tax Reform for Acceleration and Inclusion) Law has finally lowered the donor’s tax rate to six percent in excess of P250,000. Otherwise, the maximum donor’s tax would be P1,004,000 + 15 percent in excess of P10 million,” the BIR said.
Meanwhile, the BIR said the P10- million cash incentive from the Philippine government mandated under Republic Act No. 10699 shall also be considered an exclusion from gross income by virtue of Section 32 of the Tax Code. – Angela Celis
