[Ask the Tax Whiz] Does Carlos Yulo have to deal with taxed prizes?
Are the rewards given to Carlos Yulo from the Philippine government taxable?
For the P10-million incentive, no, since this is exempt from income tax due to provisions under Section 32 (B) (7) (d) of the Tax Code.
Under Republic Act 10699, the Philippine Sports Commission (PSC) will provide a P10 million cash incentive for all athletes who secure an Olympic gold medal, aside from the medal of sports valor that they receive. In Yulo’s case, he will receive P20 million in cash due to having a back-to-back win.
On the other hand, the Philippine Olympic Committee has announced they will give Yulo a house and lot, which would also face the same exemptions.
This statement references a previous statement of the Bureau of Internal Revenue (BIR) regarding the taxability of Hidilyn Diaz’s prizes after she won the first gold medal for the country in 2021.
Given the incentives from various corporations and other private individuals to Yulo, does this mean he has to pay taxes for the prizes given to him?
No. For any properties or cash incentives from companies or individuals, anything above P250,000 is subject to 6% donor’s tax—however, this tax is for the donors’ side of the equation. This includes the P6 million cash incentive given by the House of Representatives for Yulo’s back-to-back wins.
Corporations such as MegaWorld have pledged to give Yulo a fully furnished three-bedroom condominium in McKinley Hill worth P32,000,000 million, along with a P3 million cash incentive.
As of writing, Bounty Fresh has pledged P3 million, and the SM Group pledged P1 million worth of SM Retail products. Meanwhile, Apollo Home Depot has given P100,000 in cash.
Restaurants such as Vikings Buffet and Tipsy Pig have given lifetime food and drinks to the young gymnast, and the rewards keep on piling up.
In short, Yulo is free to receive his incentives with full marks—no deductions.
If you want to know more about how donor’s tax can affect other forms of cash or property incentives, and stay updated on the latest regulations, consult ACG! – Rappler.com