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BIR Statement on Taxability of Hidilyn Diaz's Prizes

QUEZON CITY -- In times when a fellow Filipino represents the Philippines and wins in the international arena, the BIR always gets asked on the taxability of their prizes—be it a medal, a crown, or cash.

In Hidilyn Diaz’s case, aside from the most precious Olympic gold medal we have long awaited for, she will be receiving a cash incentive of P10million from the Philippine government, through the Philippine Sports Commission. Certain businesses, politicians, and other entities have also pledged cash rewards, real estate, free airfare, and many more.

The P10million cash incentive mandated under Republic Act No. 10699, shall be considered an exclusion from gross income by virtue of Section 32(B)(7)(d) of the Tax Code.  The donations given to her by businesses, private individuals and entities shall also be excluded from the computation of her gross income under Section 32(B)(3) of the Tax Code.  The latter however presupposes that the generous donors have already paid the donor’s tax on these items.

It’s a good thing that the TRAIN Law has finally lowered the donor’s tax rate to 6% in excess of P250,000. Otherwise, the maximum donor's tax would be P1,004,000 + 15% in excess of P10million.

We congratulate Hidilyn Diaz and the Philippine team, and we hope for the best for the Filipino athletes still in the running to earn their spot at the Olympic podium. (BIR)

About the Author

Kate Shiene Agna

Writer

Central Office

Information Officer II under the Office of the Deputy Director-General-Digital Development Communications Unit of Philippine Information Agency. 

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