The recent championship of Hidilyn Diaz left the country in utmost excitement and awe. For the first time in Olympic history, a Filipino athlete has bagged a gold medal. With this, it is not a surprise that the weightlifter was set to receive the highest multi-million prize in the country—a whopping 33 million pesos and a P14 million condo unit. We can’t help but think, however, how much of this will Diaz actually receive after deducting taxes? Let’s talk about tax.
According to RA 10699, also known as the “National Athletes and Coaches Benefits and Incentives Act,” any bonus given to athletes will not be subject to tax.
The National Internal Revenue Code (NIRC) under Section 32(B)(7)(d), in relation mentions that “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.”
Based on the incentive system of the Philippine Sports Commission, they will grant P10 million of the P33 million total winnings of the Olympic gold medalist.
The remainder of the amount that the weightlifting champion will receive comes from the country’s tycoons—Manny Pangilinan for P10 million, Ramon Ang for another P10 million, and Deputy Speaker of the House Mikee Romero for P3 million.
As these three are considered donations, they will be subject to a 6% donor’s tax. Under the rules of taxation, the donors will carry the burden of tax and not Hidilyn. This means that Pangilinan, Ang, and Romero will each pay 6% of their donated amount in excess of the two hundred fifty thousand pesos (P250,000) exempt gift.
In a post of Connor Scott to the REO Accountancy Facebook Group, he stated that Diaz will receive the P33 million in full, as the incentives are exempt from income tax and the donor’s tax will not be shouldered by her.
Meanwhile, Dr. Andrew L. Tan announced earlier today that they will be giving Diaz a condominium unit in Eastwood city that is worth 14 million pesos. This will also be subject to donor’s tax, which is 6% on the net taxable gift and will be shouldered by Megaworld Corporation.
Overall, the weightlifting champion will reap the fruits of her labor without the burden of paying any tax liabilities. As of this writing, more incentives are expected to come her way from the government and from private sectors.
LAYOUT BY: Cristine Joie Q. Bacud
PHOTO SOURCE(S): Vincenzo Pinto, AP Photo Getty, Shutterstock, & Guide to the Philippines