THE DEPARTMENT of Finance (DoF) has rejected proposals from Congress to waive the donor tax on gifts made to successful athletes like Olympic gold medalist Hidilyn F. Diaz, and to grant permanent tax exemptions for athletes’ winnings.
When asked if he would entertain a proposal from legislators to grant such waivers and exemptions, Finance Secretary Carlos G. Dominguez III said “no.”
“All Philippine citizens and residents have an obligation to share in the cost of the provision of public goods to society,” Mr. Dominguez told reporters via Viber on Thursday.
The Bureau of Internal Revenue on Thursday said the P10-million cash incentive provided by the Philippine Sports Commission will not be counted in Ms. Diaz’s gross income, but donors who provided cash will need to pay the 6% donor’s tax.
Albay Rep. Jose Maria Clemente S. Salceda filed House Bill No. 9891 seeking to exempt from tax all rewards and donations received by national athletes.
Donations to weightlifter Ms. Diaz poured in after she won the country’s first Olympic gold medal at the Tokyo games.
Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion Act reduced the donor’s tax to a fixed rate of 6% from up to 15% previously. — Beatrice M. Laforga