Wazzup Pilipinas!?
Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. clarified that Carlos Yulo, the two-time Olympic Gold Medalist, does not have to pay taxes for the prizes, awards, rewards, gifts, or donation he received by virtue of his historic performance in the 2024 Paris Olympics. The National Internal Revenue Code (NIRC), as amended, allows for Yulo to receive these cash and properties without paying taxes.
"The National Internal Revenue Code exempts Carlos Yulo from paying taxes for the prizes, awards, rewards, gifts, or donations he received. The BIR congratulates our two-time Olympic Gold Medalist for his performance in the 2024 Paris Olympics. You are an inspiration to the men and women of the BIR," Commissioner Lumagui stated.
Section 32(B)(7)(d) of the NIRC expressly provides that all prizes and awards granted to athletes in local and international sports tournaments and competitions held in the Philippines or abroad and sanctioned by their respective national sports associations shall be exempt from income tax. Therefore, all prizes, awards and rewards granted to Yulo by the Paris 2024 Organizing Committee as well as the Philippine Government pursuant to existing laws, such as, but not limited to, Republic Act (RA) No. 10699, or the “National Athletes and Coaches Benefits and Incentives Act”, are exempt from income tax.
Section 32(B)(3) of the NIRC likewise categorically provides that the value of property acquired by gift, bequest, devise, or descent shall be excluded from gross income of the recipient and, therefore, exempt from income tax. The rewards, gift or donations (in any form) given to Yulo by private entities, or individuals clearly fall under this exemption. Therefore, Yulo need not declare these as part of his gross income, and he shall not be liable to pay any income tax thereon.
Section 98 of the NIRC is clear that the donee or receiver is not liable to donor’s tax.
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