Prizes/Awards to Athletes in Local/International Competitions Tax-Exempt
BIR Ruling No. 299-93 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Jul 8, 1993
Full text
July 8, 1993 BIR RULING NO. 299-93 PRIZES/AWARDS TO ATHLETES IN LOCAL/INTERNATIONAL COMPETITIONS TAX-EXEMPT R.A. 7549 00-00 99-93 Republic of the Philippines Golf Assoc. 209 Administration Building Rizal Memorial Sports Complex Vito Cruz, Metro Manila Attention: Mr . Jake P . Ayson Executive Officer This refers to your letter dated April 5, 1993 requesting for the implementing guidelines of R.A. No. 7549 and a clarification as to the tax treatment of prizes and awards granted to Filipinos or foreign athletes who participate and win in local and international sports tournaments and competitions in the light of said law. cdtech In reply, please be informed that the implementing guidelines of R.A. 7549 will be issued very soon. However, notwithstanding the absence of such guidelines, the law is already considered effective on July 21, 1992 after the lapse of fifteen days from the date of the publication in the Official Gazette on July 8, 1992. Under Section 1 of R.A. 7549 stating "Section 1. 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: Provided, That such prizes and awards given to said athletes shall be deductible in full from the gross income of the donor. Provided , further , That the donors of said prizes and awards shall be exempt from the payment of donor's tax." the prizes and awards granted in cash or in kind to Filipino athletes who participate and win 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. Moreover, the donors of such prizes or awards given to Filipino athletes shall be exempt from the donor's tax and shall also be allowed for income tax purposes, to deduct in full the amount from their gross income. LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue
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