House panel OKs tax exemption on donation to athletes

MANILA, Philippines — A proposal to exempt from taxes donations and prizes for athletes joining international sports competitions has hurdled the House of Representatives’ committee on ways and means.

Panel chairman Rep. Joey Salceda said House Bill 421, approved by his committee yesterday, “exempts not just the prizes that are handed out by brands and companies after the win,” but also “the donations toward their training one year before the competition.”

HB 421, originally dubbed the “Hidilyn Diaz Law” in the 18th Congress (2019-2022), didn’t make it in the Senate.

Salceda said the measure should also be named in honor of gymnast Carlos Yulo, who won two gold medals in the ongoing Paris Olympics. Weightlifter Diaz won the country’s first gold medal in the 2020 Olympics in Tokyo.

“What that teaches us is that the prize is never won on the day of the competition itself, but years before. Hard work, determination and sheer grit through many years of training wins over talent,” Salceda said, recalling Yulo’s interview when he was 12 years old that winning the Olympics was his “dream.”

“It follows the philosophy I have espoused as Albay governor: rescue is a bad word, because there is no need for rescue when all preparations have been made. Capacity is everything. The approach is to incentivize not the prize, but the preparation. Champions are not made overnight,” Salceda said.

Salceda’s committee also approved making the bill’s exemption “retroactive to Jan. 1, 2024.” 

Rep. LRay Villafuerte moved for the “plenary approval” of the measure, now called the “Carlos Yulo bill.” The senior administration legislator was author of House Bill 8226, one of the six bills incorporated into the committee-passed substitute bill. 

“Yulo’s victory should prompt our sports officials to give a long hard look at giving priority to the development of relatively non-traditional sports like gymnastics to further sharpen our global edge in international sports competitions,” the Camarines Sur second district congressman said. 

“If we sharpen our focus on sports disciplines like gymnastics and hire A-1 coaches and trainers from overseas to mentor our promising athletes, I am sure we will be able to produce more medalists like Caloy in international sports events like the Olympic games,” Villafuerte added.

Lifetime pension

Speaker Martin Romualdez is eyeing lifetime pension for Filipino athletes who have earned medals in the Olympics, apart from other benefits that they may be entitled to under a proposed legislation.

Romualdez made the proposal as he acknowledged the “immeasurable and priceless” achievements of Yulo and Diaz who won golds in separate Olympics season. 

Romualdez said that while the nation may not be able to fully repay the two athletes for making Filipinos proud, “we can acknowledge their triumph by way of giving them benefits from the government.”

Lawmakers, he said, are studying the possibility of “enhancing and increasing” government benefits to medalists in the Olympics.

“And one of these is giving a lifetime pension to all Filipino Olympic gold, silver and bronze medalists who all brought honor and pride to our country. This will start by the time they reach the age of 40, or when they retire from their field of sport,” Romualdez said.

The Speaker said he had already asked members of concerned House committees to initiate discussions on passing a bill that would “institutionalize” the grant of more benefits, financial or otherwise, to Filipino Olympic medalists.

At the same time, Romualdez directed the appropriate House committees to study amendments to the “National Athletes and Coaches Benefits and Incentives Act (Republic Act 10699),” to determine if the law needs to be updated to reflect the needs of athletes and coaches.

He said giving more benefits to Filipino Olympic medalists would guarantee a secure and brighter future for them, even after their retirement from the sports they excelled in.

Romualdez described gymnast Yulo as a “once-in-a-century Filipino athlete” following his exceptional double gold victory at the Paris Olympics. He first clinched gold in the men’s floor exercise on Saturday and followed it up with another gold in the men’s vault on Sunday.

His victories marked the Philippines’ first and second Olympic medals in gymnastics and the country’s second and third gold medals since joining the Summer Games exactly a century ago, which were also held in Paris.

The Speaker praised Yulo’s achievements for “bringing immense pride and joy to the nation and showcasing the unparalleled talent and dedication of Filipino athletes on the global stage.”

“His remarkable performance at the Paris Olympics, winning double gold in both the floor exercise and vault, is a testament to his hard work, perseverance and exceptional skill,” Romualdez said of Yulo.

The House of Representatives has pledged P3 million for gold medalists, P2 million for silver medalists and P1 million for bronze medalists.

With Yulo winning two gold medals, he will get a minimum incentive of P6 million from the House.

On top of this, Yulo will receive additional cash incentives from a fundraising campaign initiated by the Speaker among his colleagues in the chamber.

Yulo will also be conferred a congressional medal for his exceptional achievement and contribution to Philippine sports.

Earlier, Romualdez extended financial assistance to all 22 Filipino athletes participating in the Paris Olympics. — Cecille Suerte-Felipe, Richmond Mercurio, Ghio Ong, Alexis Romero