Republic of the Philippines
HOUSH OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
HousE BILLNo.  9952.
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Introduced by Representative Crispin Diego "Ping" D. Remulla
AN ACT
EXEMFTING INCENTIVES, REWARDS, BONUSES, AND OTHER FORMS 0F
EMOLUMENTS RECEIVED BY NATIONAL ATHLETES AND COACHES
FROM TAXES, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 10699,
OTHERl^rlsE KN01^7N AS THE ``NATI0NAL ATHLETES AND COACHES
BENEFITS AND INCENTIVES ACT"
EXPLANATORY NOTE
Section 32 (8) (7) (d) of the National lnternal Revenue Code (NIRC) exempts from tax
all prizes and awards given to athletes in local and international competitions sanctioned by
national sports associations, regardless of location. However, gifts from private companies and
individuals exceeding Pl million incur a 6% donor's tax.
Following  Hidilyn  Diaz's  victory  during  the  2020  Tokyo  Olympics,  she  received
significant support from the private sector. To further motivate athletes and attract additional
support,  offering  tax  incentives  to  private  entities  and  individuals  is  seen  as  a  significant
enhancement.


This measure aims to make all rewards and bonuses received by national athletes and
coaches  from  both public  and  private  sources  for  international  competition  achievements
exempt from taxes, fees, and charges.
In view of the foregoing, the approval of this measure is earnestly sought.
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CRISPIN DIHGO "PING" D. REMULLA


Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City, Metro Manila
NINETnHNTH coNGRESs
Second Regular Session
HoUsE BILLNo.  9952
Introduced by Representative Crispin Diego "Ping" D. Remulla
AN ACT
EXEMFTING INCENTIVES, REWARDS, BONUSES, AND OTHER FORMS 0F
EMOLUMENTS RECEIVED BY NATIONAL ATHLETES AND COACHES
FROM TAXES, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 10699,
OTHERi^rlsE KNol^7N AS THE ``NATI0NAL ATHLETES AND CoACHEs
BENEFITS AND INCENTIVES ACT"
Be it enacted by the Senate and the House Of Representatives Of the Philippines in Congress
assembled:
1                    SECTION 1. Short Title. -This Act shall be known as the "Hidilyn Diaz Act."
2                   SEC. 2. Declaration of principle. -The state shall give priority to sports to foster
3      patriotism and nationalism, accelerate social progress, and promote total human liberation and
4      development. Towards this end, the state shall look after the welfare of national athletes and
5      coaches by providing benefits and incentives for qualified athletes and coaches who compete
6      or win in intemational sports competitions and bring honor and recognition to the country.
7                    SEC. 3. New provision. A new section, designated as section 4-A, is hereby inserted
8      in Republic Act No.10699, otherwise known as the "National Athletes and coaches Benefits
9       and Incentives Act," to read as follows:
io                  "SHC.  4-A.  ExnMPTloN  FROM  TAXHs  oF  INCHNTIVES,  REWARDS,
11      BONUSHS, AND OTHER FORMS OF EMOLUMENTS RECEIVED BY COMPETING
1


1      0R  VINNING  NATIONAL  ATHLETHS  AND  COACHES.  -  ALL  INCENTIVES,
2      REWARDS, BONUSES AND OTHER FORMS 0F EMOLUMENTS, AS WELL AS
3      DONATIONS, GIFTS, ENDOWMENTS AND CONTRIBUTIONS, WHETHER FROM
4      PUBLIC  OR  PRIVATE  PHRSONS  0R  ENTITIES,  RECEIVED  BY  NATIONAL
5      ATHLETES    WHO    COMPETE    0R    lnrlN    IN    INTERNATIONAL    SPORTS
6      COMPETITIONS AS DEFINED IN THIS ACT, INCLUDING THOSE RECEIVED BY
7      THEIR RESPECTIVE  COACHES,  SHALL  BE  EXEMPT  FROM  ANY  AND  ALL
8      NATIONAL OR LOCAL TAXES, FEES AND CIIARGES, SUBJHCT TO RULES AND
9      REGULATIONS   TO   BE   ISSUED   BY   THH   SECRETARY   OF   FINANCE,   AS
io     REcoMMENDED   By   TIIE   coMMlssloNER   oF   n`ITERNAL   REVENUE:
11      PROVIDED,   HOWEVER,   THAT   DONATIONS,   GIFTS,   ENDOWMENTS   AND
12      CONTRIBUTIONS   MADE   PRIOR   TO   TIIE   COMPETITION   ITSELF   AND
13      DIRECTLY     AND     EXCLUSIVELY     USHD     TO     FUND     TRAINING     AND
14      COMPETITION-RELATED EXPENSHS, AS WELL AS INCENTIVES, REWARDS,
15      BONUSES AND OTHHR FORMS OF EMOLUMENTS RECHIVED BY COMPETING
16      0R WINNING NATIONAL ATHLETHS AND COACHES, SHALL BE CONSIDERED
17      AS  ALLOWABLI]  DEDUCTIONS  FROM  GROSS  INCOME  FOR PURPOSES  0F
18      COMPUTING TIIE TAXABLE INCOME OF THE DONOR IN ACCORDANCE lh/ITH
19      THE PROVISIONS OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS
20      AMENDED."
21                  "THII EXEMPTION FROM DONOR'S TAX AND DHDUCTIBILITY FROM
22      GROSS INCOME PROVIDED HEREIN MAY BE AVAILED OF WITHIN ONE (I)
23      YEAR  BEFORE  TIIE  COMMENCEMENT  0F  THE  INTHRNATI0NAL  SPORTS
24      COMPHTITION  WHERE  THH  NATIONAL  ATHLETE  WILL  COMPETE  IN,  AS
25      CERTIFIED  BY TIIE  RESPECTIVE  BODIES  THAT ACCREDITED  THEM AND
2


1      THEIR COACHES, WHICH MAY BE THE PHILIPPINE SPORTS COMMISSION,
2      PHILIPPINE   OLYMPIC   COMMITTEH,   OR   THH   NATIONAL   PARALYMPIC
3      COMMITTIEE OF THE PHILIPPINES, AND WITHIN THREE (3) MONTHS AFTER
4      THH INTHRNATI0NAL SPORTS COMPETITION."
5                  "THH EXEMPTIONS AND PRIVILHGES PROVIDED HEREIN SHALL TAKE
6      EFFHCT ON JANUARY I, 2023 AND SHALL NOT BE AVAILED IN LIEU OF ANY
7      TAX EXEMPTION OR PRIVILEGE GRANTED UNDER EXISTING LAWS."
8                   SEC. 4. Implementing Rules and Regulations. -Within thirty (30) days from the
9      effectivity of this Act, the Department of Finance shall, upon recommendation by the Bureau
10      of Internal Revenue, promulgate rules and regulations for the effective implementation of this
11      Act:  Provided,  That  failure  to promulgate  said rules  and regulations  shall  not prevent the
12      implementation of the provisions of this Act.
13                   SEC. 5. Repealing clause. -All laws, decrees, executive orders, rules, and regulations
14      or parts thereof which are contrary to or inconsistent with any provisions of this Act are hereby
15      repealed, amended, or modified accordingly.
16                   SEC.  6.  Separability  Clause.  -  If any  provision  or  part  of this  Act  is  declared
17      unconstitutional and invalid, the remaining parts or provisions not affected shall remain in full
18      foree and effect.
19                    SEC. 7. Effectivity. -This Act shall take effect after fifteen (15) days following its
20      complete publication in the official Gazette or in a newspaper of general circulation.
Approved,
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