NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF TFffi PHILIPPINES 
)
First Regular Session 
)
SENATE
s.No. 495
'i';. I
*22 JUU3 PI :18
HBCEIVEDuV;
Introduced by Senator Loren B. Legarda
AN ACT
EXEMPTING INCENTIVES, REWARDS, BONUSES, AND OTHER FORMS OF 
EMOLUMENTS RECEIVED BY NATIONAL ATHLETES AND COACHES 
FROM TAXES, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 10699, 
OTHERWISE KNOWN AS THE "NATIONAL ATHLETES AND COACHES 
BENEFITS AND INCENTIVES ACT"
EXPLANATORY NOTE
Incentives granted to athletes who competed in local or international sports 
competitions are exempted from tax under Section 32 (B) (7) (d) of the National 
Internal Revenue Code (NIRC), which provides 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 
are excluded from gross income."
While the rewards received by athletes are exempted from tax pursuant to the 
abovementioned provision, those received from private companies and individuals 
are still subject to the six percent (6%) donor's tax if the donation is in excess of PI 
million. This means that the properties and cash gifts over PI million from the private 
sector will be treated as donations that are subject to a 6% donor's tax.
The historic victory of Hidilyn Diaz in the 2020 Tokyo Olympics paved way for 
the outpouring of rewards and gifts from the private sector in honor of her excellence 
and being the pride of the country. To boost the national athletes' motivation in


bringing honor to the country and to encourage more support from the private entities 
which are considered the government's partners in supporting Filipino athletes, 
financial incentives and tax breaks should be given to benevolent private entities and 
individuals who support the national athletes.
In this regard, this bill seeks to exempt from taxes, fees, and charges the 
rewards, bonuses, and other forms of emoluments received by national athletes and 
coaches who compete or win in international sports competitions from both public 
and private persons or entities.
In view of the foregoing, the passage of this bill is earnestly sought.
LOREN LEGARDA


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
s.No. 495
m': 1 
o-'.ua...
*22 JUL13 P1 :19
Introduced by Senator Loren B. Legarda
AN ACT
EXEMPTING INCENTIVES, REWARDS, BONUSES, AND OTHER FORMS OF 
EMOLUMENTS RECEIVED BY NATIONAL ATHLETES AND COACHES 
FROM TAXES, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 10699, 
OTHERWISE KNOWN AS THE "NATIONAL ATHLETES AND COACHES 
BENEFITS AND INCENTIVES ACT"
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled:
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Section 1. Short Title. - This Act shall be known as the "Hidilyn Diaz Act."
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Sec. 2. Declaration of Principle. - The State shall give priority to sports to foster
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patriotism and nationalism, accelerate social progress, and promote total human
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liberation and development. Towards this end, the State shall look after the welfare of
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national athletes and coaches by providing benefits and incentives for qualified
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athletes and coaches who compete or win in international sports competitions and
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bring honor and recognition to the country.
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Sec. 3. New provision. A new Section, designated as Section 4-A, is hereby
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inserted in Republic Act No. 10699, otherwise known as the "National Athletes and
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Coaches Benefits and Incentives Act", to read as follows:
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"SEC. 4-A. EXEMPTION FROM TAXES OF INCENTIVES, REWARDS,
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BONUSES, AND OTHER FORMS OF EMOLUMENTS RECEIVED BY
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COMPETING OR WINNING NATIONAL ATHLETES AND COACHES, -
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ALL INCENTIVES, REWARDS, BONUSES AND OTHER FORMS OF
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EMOLUMENTS, AS WELL AS DONATIONS, GIFTS, ENDOWMENTS
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AND CONTRIBUTIOr JS, WHETHER FROM PUBLIC OR PRIVATE


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PERSONS OR ENTITIES, RECEIVED BY NATIONAL ATHLETES WHO 
COMPETE OR WIN IN INTERNATIONAL SPORTS COMPETITIONS AS 
DEFINED IN THIS ACT, INCLUDING THOSE RECEIVED BY THEIR 
RESPECTIVE COACHES, SHALL BE EXEMPT FROM ANY AND ALL 
NATIONAL OR LOCAL TAXES, FEES AND CHARGES, SUBJECT TO 
RULES AND REGULATIONS TO BE ISSUED BY THE SECRETARY OF 
FINANCE, AS RECOMMENDED BY THE COMMISSIONER OF 
INTERNAL REVENUE: PROVIDED, HOWEVER, THAT DONATIONS, 
GIFTS, ENDOWMENTS AND CONTRIBUTIONS MADE PRIOR TO THE 
COMPETITION ITSELF AND DIRECTLY AND EXCLUSIVELY USED TO 
FUND TRAINING AND COMPETITION-RELATED EXPENSES, AS WELL 
AS INCENTIVES, REWARDS, BONUSES AND OTHER FORMS OF 
EMOLUMENTS RECEIVED BY COMPETING OR WINNING NATIONAL 
ATHLETES AND COACHES, SHALL BE CONSIDERED AS ALLOWABLE 
DEDUCTIONS FROM GROSS INCOME FOR PURPOSES OF 
COMPUTING THE TAXABLE INCOME OF THE DONOR IN 
ACCORDANCE WITH THE PROVISIONS OF THE NATIONAL 
INTERNAL REVENUE CODE OF 1997, AS AMENDED."
"THE EXEMPTION FROM DONOR'S TAX AND DEDUCTIBILITY 
FROM GROSS INCOME PROVIDED HEREIN MAY BE AVAILED OF 
WITHIN ONE (1) YEAR BEFORE THE COMMENCEMENT OF THE 
INTERNATIONAL SPORTS COMPETITION WHERE THE NATIONAL 
ATHLETE WILL COMPETE IN, AS CERTIFIED BY THE RESPECTIVE 
BODIES THAT ACCREDITED THEM AND THEIR COACHES, WHICH 
MAY BE THE PHILIPPINE SPORTS COMMISSION, PHILIPPINE 
OLYMPIC COMMITTEE, OR THE NATIONAL PARALYMPIC 
COMMITTEE OF THE PHILIPPINES, AND WITHIN THREE (3) MONTHS 
AFTER THE INTERNATIONAL SPORTS COMPETITION/'
"THE EXEMPTIONS AND PRIVILEGES PROVIDED HEREIN 
SHALL TAKE EFFECT ON JANUARY 1, 2023 AND SHALL NOT BE 
AVAILED IN LIEU OF ANY TAX EXEMPTION OR PRIVILEGE GRANTED 
UNDER EXISTING LAWS."


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Sec. 4. Implementing Rules and Regulations. - Within thirty (30) days from the 
effectivity of this Act, the Department of Finance shall, upon recommendation by the 
Bureau of Internal Revenue, promulgate rules and regulations for the effective 
implementation of this Act: Provided, That failure to promulgate said rules and 
regulations shall not prevent the implementation of the provisions of this Act
Sec. 5. Repealing Clause. - All laws, decrees, executive orders, rules, and 
regulations or par4:s thereof which are contrary to or inconsistent with any provisions 
of this Act are hereby repealed, amended, or modified accordingly.
Sec. 6. Separability Clause. - If any provision or part of this Act is declared 
unconstitutional and invalid, the remaining parts or provisions not affected shall 
remain in full force and effect.
Sec. 7. Effectivity. - This Act shall take effect after fifteen (15) days following its 
complete publication in the Official Gazette or in a newspaper of general circulation.
Approved,