Donor tax treatment and deductibility
- Section 1 requires that prizes and awards given to athletes under the Act are deductible in full from the gross income of the donor.
- Section 1 exempts the donors of the prizes and awards from the payment of donor’s tax.
- The deductibility and donor’s tax exemption apply to the same prizes and awards covered by Section 1.
Defined terms and who qualifies
- Section 2 defines “Sports tournaments and competitions” as tournaments and competitions sanctioned by national sports associations in accordance with the rules and regulations pursuant to Section 3.
- Section 2 defines “National sports association” as one that is duly accredited by the Philippine Olympic Committee.
- Section 2 ties qualification for coverage to the sanction of tournaments and competitions by the national sports association, and accreditation by the Philippine Olympic Committee.
Implementation rules and timeline
- Section 3 requires the Commissioner of the Bureau of Internal Revenue to recommend rules and regulations for effective implementation.
- Section 3 requires the Philippine Sports Commission (PSC) and the Department of Finance to jointly promulgate the necessary rules and regulations.
- Section 3 sets a deadline: joint promulgation must be made within thirty (30) days from the effectivity of the Act.
Repeal of inconsistent rules
- Section 4 repeals or modifies accordingly all laws, decrees, executive orders, other executive issuances, rules and regulations, or parts thereof, that are inconsistent with the Act.
Effectivity upon publication
- Section 5 makes the Act effective upon the completion of its publication in at least two (2) newspapers of general circulation.