Question & AnswerQ&A (Republic Act No. 7549)
The main purpose of Republic Act No. 7549 is to exempt all prizes and awards gained from local and international sports tournaments and competitions from the payment of income tax and other forms of taxes.
The tax exemption applies to athletes who receive prizes and awards from local and international sports tournaments and competitions sanctioned by their respective national sports associations.
No, donors of prizes and awards given to athletes under this Act are exempt from the payment of donor's tax.
Yes, such prizes and awards given to athletes are deductible in full from the gross income of the donor.
The Act defines 'sports tournaments and competitions' as those tournaments and competitions sanctioned by the national sports associations in accordance with the rules and regulations pursuant to Section 3 of the Act.
National sports associations are those duly accredited by the Philippine Olympic Committee.
The XVIth Southeast Asian Games (SEA Games) held in Manila from November 25 to December 5, 1991, is specifically mentioned as covered by the benefits of the Act.
The Philippine Sports Commission (PSC) and the Department of Finance, upon recommendation of the Commissioner of the Bureau of Internal Revenue, are tasked with jointly promulgating rules and regulations within 30 days from the effectivity of the Act.
All laws, decrees, executive orders, other executive issuances, rules, and regulations or parts thereof that are inconsistent with this Act are repealed or modified accordingly.
The Act took effect upon the completion of its publication in at least two newspapers of general circulation.