Request for Exemption from Income and Other Forms of Taxes of the Cash and Other Prizes to be Won by Participating Athletes in the Marlboro Tour '96

July 29, 1996 BIR RULING NO. 080-96 21 (c) (1)-00-000-80-96 Professional Cycling Association of the Philippines, Inc. Amoranto Sports Complex Andro Roces Avenue Quezon City Attention: Mr . Matias V . Defensor, Jr . Chairman Gentlemen : This refers to your letter dated April 8, 1996, which was indorsed to this Office by the Department of Finance, requesting in effect, for ruling, exempting from the payment of income and other forms of taxes of the cash and other prizes to be won by the participating athletes in the Marlboro Tour '96. LLpr Documentary evidence submitted disclosed that Professional Cycling Association of the Philippines, Inc., is organizing the Marlboro Tour '96, the annual summer cycling competition scheduled from April 14 to May 5, 1996 from Davao City, traveling across Mindanao, the Visayas and Luzon before finally winding up in Baguio City for the grand finish; that a total of 72 selected cyclists from 9 regional/provincial teams including the National Team will participate in this event, and vie for total cash prize of P5, 841,750.00 and other prizes sponsored by the following: Philip Morris Philippines, Inc. (Marlboro) P5,751,750.00 San Miguel Corporation (Gold Eagle Beer) 30,000.00 Gatorade Sports Marketing Phils. (Gatorade) 30,000.00 Regent Foods Corporation (Charge) 30,000.00 that this local sports tournament is sanctioned by the Philippine Amateur Cycling Association (PACA), a national sports association accredited by and member of the Philippine Olympic Committee (POC); and that pursuant to Section 1 of the Republic Act. No. 7549 which was approved on May 22, 1992 by then President Corazon C. Aquino, "prizes and awards granted to athletes in local and international sports tournaments and competitions are exempted from the payment of income tax and other form of taxes." In reply, please be informed that pursuant to Section 1 of Republic Act No. 7549 as aforementioned, the prizes derived from the annual summer cycling competition organized by the Professional Cycling Association of the Philippines, Inc., are not subject to income tax and to the 20% final withhold tax imposed under Section 21 (c) (1) of the Tax Code, as amended. cdpr Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue