Private firms, individuals who give gifts to Hidilyn Diaz must pay donor's tax: BIR


Posted at Jul 29 2021 04:22 PM

Private firms, individuals who give gifts to Hidilyn Diaz must pay donor's tax: BIR 1
Gold medalist Hidilyn Diaz of the Philippines shows her medal, the first Olympic gold for the Philippines, after wining the 55-kg category in women's weightlifting, July 26, 2021. Edgard Garrido, Reuters/File

MANILA— Prizes and incentives received by Olympian Hidilyn Diaz for her gold medal win are excluded from the computation of her gross income but private donors are expected to pay the donor's tax for their gifts to the athlete, the Bureau of Internal Revenue said Thursday. 

Under Philippine law, Diaz is to receive a P10-million incentive. Tycoons Ramon Ang and Manny Pangilinan will also give her P10 million each, while a Dennis Uy-led foundation said it would give the athlete P5 million.

President Rodrigo Duterte said he would give Diaz another P3 million while Rep. Mikee Romero promised another P3 million. 

On top of the money, the athlete will also receive 3 houses, 1 condo unit worth P14 million, 1 van and 1 SUV. Private firms also gifted her with free flights and free gasoline for life. 

The P10-million mandated by law "shall be considered an exclusion from gross income" in compliance with Section 32 (B)(7)(d) of the Tax Code, the BIR said.

Donations from the private sector are also excluded from the computation of her gross income, the agency added.

"The latter however presupposes that the generous donors have already paid the donor’s tax on these items," the BIR said.

Donor's tax has been lowered under the Tax Reform for Acceleration and Inclusion (TRAIN) law to 6 percent in excess of P250,000, the agency said.

The tax collection body also congratulated Diaz and the Philippine team for representing the country in the Tokyo 2020 Olympics.

"We congratulate Hidilyn Diaz and the Philippine team, and we hope for the best for the Filipino athletes still in the running to earn their spot at the Olympic podium," it said.

Diaz won the country's first Olympic gold medal after winning the women's weightlifting 55-kilogram event against China. 


Watch more on iWantTFC