BIR answers tax issues on Hidilyn Diaz's Olympic winnings

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Metro Manila (CNN Philippines, July 29) — The Bureau of Internal Revenue on Thursday addressed the confusion over the financial rewards and incentives for Olympic gold medalist Hidilyn Diaz, saying the cash prize from the government will not be taxed.

Diaz may also not need to pay taxes on donations given to her by businesses, private individuals, and entities — provided the donor's tax has already been paid, the BIR added.

“In times when a fellow Filipino represents the Philippines and wins in the international arena, the BIR always gets asked on the taxability of their prizes—be it a medal, a crown, or cash,” the BIR said in a statement.

Ending the country's 97-year Olympic gold medal drought, Diaz has secured ₱10 million cash incentive as mandated under Republic Act No. 10699. This reward, the BIR noted, will not be taxed.

Given Diaz's rare feat, gifts from local businesses have also flooded the athlete—from cash incentives to house and lot, amounting to over ₱50 million.

READ: LIST: Rewards, prizes for Hidilyn Diaz after Olympic gold victory

"The donations given to her by businesses, private individuals, and entities shall also be excluded from the computation of her gross income under Section 32(B)(3) of the Tax Code," the agency said.

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

The BIR said the Tax Reform Acceleration and Inclusion Law lowered the donor’s tax rate to 6% in excess of ₱250,000.

"Otherwise, the maximum donor's tax would be ₱1,004,000 + 15% in excess of ₱10million," the BIR said.

In an interview with CNN Philippines earlier this week, GoNegosyo founder Joey Concepcion said Diaz will live a "comfortable" life as he sees up to ₱100 million incentives from various brands.

Diaz is also expected to witness "a long list of commercial endorsements."

The 30-year-old weightlifter returned to the country on Wednesday, two days after clinching the historic first gold medal in the Olympics.