QuestionsQuestions (Republic Act No. 7549)
RA 7549 exempts all prizes and awards gained by athletes from local and international sports tournaments and competitions from the payment of income tax.
They must be sanctioned by the respective national sports associations and held in the Philippines or abroad.
It means a duly accredited national sports association by the Philippine Olympic Committee.
Yes. The Act covers prizes and awards gained from both local and international sports tournaments and competitions.
The prizes and awards given to athletes shall be deductible in full from the gross income of the donor.
No. Donors of said prizes and awards are exempt from the payment of donor’s tax.
The tournaments must be sanctioned by the national sports associations in accordance with the rules and regulations pursuant to the Act’s Section 3.
It covers the XVIth Southeast Asian Games (SEA Games) held in Manila from November 25 to December 5, 1991.
Upon recommendation of the Commissioner of the Bureau of Internal Revenue, the Philippine Sports Commission (PSC) and the Department of Finance.
Within thirty (30) days from the effectivity of the Act.
The Act requires that the PSC and the Department of Finance promulgate the rules upon the recommendation of the Commissioner of the Bureau of Internal Revenue.
All laws, decrees, executive orders, other executive issuances, rules and regulations, or parts thereof inconsistent with RA 7549 are repealed or modified accordingly.
It takes effect upon the completion of its publication in at least two (2) newspapers of general circulation.
Both. Athletes benefit from income tax exemption on prizes/awards, and donors benefit from donor’s tax exemption and full deductibility from gross income.
No. The Act refers to “athletes in local and international sports tournaments and competitions held in the Philippines or abroad” sanctioned by national sports associations; it does not expressly limit coverage to Philippine residents.
To encourage participation and support for sports by removing tax burdens on athletes’ winnings and providing incentives to donors through full deductibility and donor’s tax exemption.