THE House committee on ways and means has approved the tax provisions of a bill seeking to give tax incentives, in the form of tax exemptions and tax deductions, to individuals and corporations giving donations, contributions, gifts and grants to Filipino Olympic medalists.
The committee, in a hearing presided by its vice chairman Rep. Joey Salceda, approved the tax provisions contained in House Bill 4054 authored by Speaker Pantaleon Alvarez, Majority Leader Rodolfo Fariñas, Minority Leader Danilo Suarez, and Rep. Jericho Nograles, among others.
The committee on youth and sports development chaired by Rep. Conrado Estrella III earlier approved HB 4054 and endorsed it to the committee on ways and means for the approval of the bill’s tax provisions, namely Sections 5, 6 and 7.
House Bill 4054 provides that any donation, contribution, gift and grant of real or personal property to any Filipino athlete, who has won for the Philippines a bronze, silver or gold medal in the Summer Olympic Games, shall constitute an allowable deduction from the income of the donor for income tax purposes and shall be exempt from donor’s tax in accordance with the National Internal Revenue Code, as amended.
The value of each donor’s donations, contributions, gifts, or grants eligible for the tax exemption and deduction shall only be up to an amount not exceeding P1 million for one taxable year. The value of the donation in excess of P1 million shall be subject to donor’s tax and shall no longer be allowed as tax deduction.
The approved Section 5 of HB 4054, titled “Coverage,” provides that only donations, contributions, gifts and grants made within one year made from the date the Olympic medal was won shall be made eligible for the tax incentives. The grant of tax exemption and deduction herein shall not be available for donations, contributions, gifts and grants to medalists in demonstration and exhibition sports events in the Summer Olympic Games.
The approved Section 6 titled “Government Incentives” provides that any award, incentive or grant given by the government, its corporations, institutions, instrumentalities and agencies, to Olympic medalists for winning an Olympic medal shall be exempt from taxes.