House OKs tax exemption for athletes' cash grants and prizes

The House of Representatives approved on third reading House Bill No. 10723, which grants tax exemption to cash grants and prizes received by national athletes and coaches, with 203 lawmakers voting in favor and none against.

The bill amends Republic Act No. 10699 to exempt all incentives, rewards, bonuses, emoluments, donations, gifts, endowments, and contributions received by national athletes and their coaches from national or local taxes, fees, and charges.

These tax-exempt rewards are for athletes and coaches who compete or win in international sports competitions.

The exemption will be retroactive, covering incentives and contributions starting January 1, 2024.

To qualify for tax exemptions, incentives and donations must be made prior to the competition and directly and exclusively used to fund training and competition-related expenses.

Donations, gifts, endowments, and contributions used for training and competition expenses, as well as incentives received by athletes and coaches, will also be considered allowable deductions from the donor's gross income for tax purposes.

Donors may avail of the tax exemption within one year before and three months after the international sports competition, unless the donations are coursed through the Philippine Sports Commission, the Philippine Olympic Committee, or the Philippine Paralympic Committee.

House Speaker Martin Romualdez welcomed the passage, noting it complements other initiatives like considering a lifetime monthly pension for Olympic medalists.