Republic of the Philippines < ys
HOUSE OF REPRESENTATIVES > RECEIVED ®
Quezon City Sone!

TIME: a

SIXTEENTH (16") CONGRESS
First Regular Session

House Bill No, 8506

Introduced by: Representatives HON. JOSE L. ATIENZA, JR., HON.
FERDINAND MARTIN G. ROMUALDEZ, HON. ALETA C. SUAREZ,

HON. LANI MERCADO REVILLA, HON. JONATHAN A, DELA
CRUZ, HON. VICTOR F. ORTEGA, HON. PHILIP A. PICHAY, HON.
DIOSDADO MACAPAGAL ARROYO

EXPLANATORY NOTE

It appears opportune to strengthen at this point in time the
constitutional edict that “ The state shall give priority to education, science
and technology, arts, culture, and sports to foster patriotism and nationalism,
accelerate social progress, and promote total human liberation and
development (Article II, Sec. 17; Art. XIV Sec. 19 (1) Philippine
Constitution.

The declared policy of the state apropos the vital role of sports in
nation building was initially given impetus by the passage earlier of R.A.
9064 as well as Sec. 32 B 7 d of R.A. 8424, which however, limited the
incentives given therein to amateur athletes. In this day and age, even the
International Olympic Committee have found good reason to allow
participation of professional athletes in events formerly limited to amateurs.
Thus, the need to distinguished amateurs from professionals is no longer in
vogue.

For purposes of attaining that bounden state policy, all athletes are
called upon to exert their best while the state must in turn provide and grant
adequate incentives for apart from the prizes and awards, the participation of
these sports personalities in nation building are off equal import and
significance.

The recent tax controversy involving the country’s national treasure
and recognized national icon and fellow-colleague in Congress, Emmanuel
“Manny” Pacquiao, serves as an eye opener to extend similar tax incentive
to any Filipino professional athlete who competes in any sport tournaments


sanctioned by any international organization recognized or certified as such
by the Philippine Sports Commission, as that extended to in amateur athletes
under the tax code.

There is the imperative need to amend our tax laws with the end in view of
extending tax incentives to our professional Filjpino athletes who brought
honor and pride to our country for which |the only consolation our
government could give to them is to insure that/the income or awards they
received from such sports competition be enjdyed by them to the fullest
especially when “their youth is gone and their wprk is done”.

‘A, JR.

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Wy,
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BUHAY Party

HON. FERDINA' % ROMUALDEZ

DISTRICT, CAVITE

HON. re REVILLA
2

HON. sovkruan A, DELA CRUZ
ABAKADA PARTY-LIST

HON. VICTOR F. ORTEGA
CT, UNION

1" DIST! yy
HON. ®/ALAP A. PICHAY
2%? DISTRICT, SURIGAO DEL SUR

HON. DIOSDADO MACAPAGAL ARROYO
28 DISTRICT, CAMARINES SUR


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH (16'") CONGRESS
First Regular Session

House Bill No, 8506

Introduced by: Representatives JOSE L. ATIENZA, JR., HON.
FERDINAND MARTIN G. ROMUALDEZ, HON. ALETA C, SUAREZ,
HON. LANI MERCADO REVILLA, HON. JONATHAN A. DELA
CRUZ, HON. VICTOR F. ORTEGA, HON. PHILIP A. PICHAY, HON.
DIOSDADO MACAPAGAL ARROYO

AN ACT GRANTING TAX EXEMPTION FOR PRIZES AND AWARDS
GRAN’ TO FILIPINO ATHLETES IN INTERNATIONALLY
SANCTIONED SPORTS COMPETITIONS AND FURTHER AMENDING
FOR THIS PURPOSE SEC. 32 (B) (7) (4) OF 1997 TAX CODE (R.A
8424)

Be it enacted by the Senate and the House of Representatives in Congress
assembled:

Section 1. Short Title: This act shall be known as the “Tax Incentive Act For
Professional Athletes Act of 2013”.

Sec. 2. Statement of Policy: This state shall promote and encourage
excellence in sports by providing tax incentives to professional athletes who
bring honor and recognition to the country by winning in internationally
sanctioned sports competitions and tournaments.

Sec. 3 Definition of Terms:

A. Professional Athletes: any duly licensed Filipino athlete making use
of his skill to earn income by joining sports competitions locally or
internationally.

B. Internationally sanctioned competition: any sports competition
promoted locally or internationally by associations, organizations, or groups
duly licensed or authorized to promote or stage such sports competition.

See. 4. See. (32) (B) (7) d of RA 8424 as amended is hereby further amended
to read as follows:

Sec. 32 Gross Income



(b) Exclusions from Gross Income — The following items shall not be
included in gross income and shall be exempt from taxation under this
Title

(7) miscellaneous items
Xxx

(D) Prizes and Awards in sports competitions ~ All prizes and awards
to amateur and professional athletes in local and international sports
competitions and tournaments whether held in the Philippines or
abroad, sanctioned by their national sports association or_any
recognized world or international sports associations.”

Sec. 5 Coverage: The exemption provided herein shall apply to prizes and
awards in all the aforementioned competitions earned TEN (10) years prior
to the approval — effectivity of this act .

Sec. 6 Application: The tax incentives provided for in this act may be
availed of or enjoyed by the winner-taxpayer who may have, or in
connection with any pending assessments, tax cases or pending assessment
charges or warrants and levy in the process of or yet to be implemented.

Any taxpayer who otherwise would have been exempt as provided for in this
act, who has paid income tax for prizes and/or awards in internationally
recognized competitions within the last ten years of this act shall be entitled
to apply for tax credit in accordance with the law.

Sec, 7 Effectivity: This act shall take effect after publication in two (2)
publications of general circulation.

Approved.