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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH (17) CONGRESS
First Regular Session

4344

House Bill No.

Introduced by: Representative Jose L. Atienza, Jr.

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, art, 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 RA. 9064 as
well as Sec. 32 B 7 d of RA. 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.

As all our perform to the best of their abilities in international
‘competitions, the state must in turn provide and grant them adequate incentives.

The recent tax controversy involving the country’s national
treasure and recognized national icon and now Senator Emmanuel “Manny”
Pacquiao serves as an eye opener for government to extend similar tax
incentives to any Filipino professional athlete who competes in tournaments
sanctioned by international sports organizations and recognized or certified as
such by the Philippine Sports Commission, as such that extended to amateur
athletes under the tax code.

It is therefore imperative to amend our tax laws with the en]
view of extending tax incentives to our professional Filipino athletes
continue to bring honor and pride to our country.

Rey tative, BUHAY Party-list



Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH (17') CONGRESS
First Regular Session

House Bill No, 434 4

Introduced by: Representative Jose L. Atienza, Jr.

AN ACT
GRANTING TAX EXEMPTION FOR PRIZES AND AWARDS GRANTED 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 of the Philippines in
the Congress assembled:

SECTION 1. Short Title: This act shall be known as the “Tax Incentive Act for
Professional Athletes Act of 2016”.

SECTION 2. Statement of Policy: This state shat 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.

SECTION 3. Definition of Terms:

A. Professional Athletes: any duly li
skill to earn income by
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.

snsed Filipino athlete making use of his
ng sports competitions locally or

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

Sec. 32 Gross Income

(b) Exclusion 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 of abroad, sanctioned by their national sports
association or any recognized world ort international sports
associations.”

SECTION 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.

SECTION 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 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.

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

Approved.