Carlos Yulo (MANILA BULLETIN)

As gymnast Carlos Yulo and his fellow 2024 Olympians continue to be the toast of the town, the House of Representatives gave its final nod to a bill that sought to exempt Filipino athletes and their coaches from the payment of taxes on the incentives, rewards, bonuses, and other forms of emoluments they have received. 

Passed on third and final reading during plenary session Wednesday night, Aug, 21 on the strength of 203 affirmative votes was House Bill (HB) No. 10723. There were neither any negative votes nor abstentions. 

HB No. 10723 not only exempts rewards awarded by brands and companies following an athlete’s victory, but also donations used for the preparation of national athletes one year before the tournament.
 
Once signed and enacted into law by President Marcos, the proposed piece of legislation would amend the Republic Act (RA) No.10699 or the “National Athletes and Coaches Benefits and Incentives Act". 

Some have called for the proposal to be named the Yulo law, after the Filipino gymnast who won two historic golds in the recent 2024 Paris Olympics. Yulo's golden feat has earned him tens of millions of cash incentives and bonuses.
 
The bill exempts from national or local taxes, fees and charges “all incentives, rewards, bonuses and other forms of emoluments, as well as donations, gifts, endowments and contributions, whether from public or private persons or entities, received by national athletes who compete or win in international sports competitions” including those received by their coaches. 
 
Likewise, donations, incentives, and rewards given to the athletes and coaches prior to the competition and exclusively used to fund training and competition-related expenses ”shall be considered as allowable deductions from gross income for purposes of computing the taxable income of the donor".
 
Donors may avail of the tax exemption within one year before the competition entered into by the concerned athlete and coach and within three months after the international tournament. 
 
The required period to avail of the tax exemptions does not apply for donations, rewards, and contributions coursed through the Philippine Sports Commission, the Philippine Olympic Committee, and the Philippine Paralympic Committee.
 
House Speaker Martin Romualdez welcomed the passage of the measure. He noted that it was among the various initiatives in Congress to enhance the benefits to Filipino athletes who brought pride and honor to the country.
 
Earlier, Romualdez said the House was also contemplating the grant of lifetime monthly pension to Filipino athletes who would win medals in the Olympics, starting when they reach the age of 40.
 
“The honor our Olympians Carlos Yulo and Hidilyn Diaz gave our country is immeasurable and priceless, but we can acknowledge their hard work and triumph by way of benefits from the government,” he said. 
 
Parañaque City 2nd district Rep. Gus Tambunting, chairman of the House Committee on Legislative Franchises and one of the authors of HB No.10723, hopes that tax-free donations and gifts would encourage more Filipino athletes to excel in their chosen sports. 
 
“It is clear that Filipino athletes are world-class, and our performance in international competitions affirms this. That is why now more than ever, it is imperative that Congress does its part in pro-actively supporting our athletes that will help them attain their full potential,” he said. 
 
“We hope to further encourage various sectors to support our athletes by exempting donations, endowments, or contributions directly and exclusively for state youth and sports development programs and competitions from taxes,” he said.