Are Cash Incentives to Filipino Athletes Exempt From BIR Income Tax? RA 10699 Explained

Cash incentives the Philippine government awards to Filipino athletes for winning in competitions sanctioned by their national sports association are treated by the BIR as exempt from income tax. Republic Act No. 10699 is the law most people point to, but RA 10699 is actually the funding law for the government’s incentive-payment program — not the tax exemption itself, which rests on a separate NIRC provision explained below.

This is a narrower, statute-specific question than the general rule on prizes and winnings. For how ordinary prizes, raffle winnings, and contest payouts are taxed in the Philippines, see the sibling post Withholding Tax on Prizes and Winnings in the Philippines: The 20% Final Tax Under NIRC Section 24(B)(1) — that post covers the general 20% final tax rule this athlete exemption carves out of.

What does RA 10699 actually do? #

Republic Act No. 10699, signed into law in 2015 as “An Act Expanding the Coverage of Incentives Granted to National Athletes and Coaches,” repealed the earlier RA No. 9064 (the National Athletes, Coaches and Trainers Benefits and Incentives Act of 2001) and expanded the government’s cash-incentive program for medal-winning national athletes. It sets up the framework under which the Philippine government pays cash incentives to athletes and coaches who win medals in the Southeast Asian (SEA) Games, Asian Games, and Olympic Games — and their Paralympic equivalents. In short, RA 10699 is an incentive-funding law: it says the government will pay medalists a defined cash amount. It is not, by itself, a tax provision.

So where does the tax exemption actually come from? #

The income tax exemption the BIR has applied to athletes’ winnings — reported in coverage of cases such as gymnast Carlos Yulo’s Olympic earnings — is commonly understood to rest on NIRC Section 32(B)(7)(d), a gross-income exclusion provision, not on RA 10699. The exemption is commonly summarized as covering “prizes and awards granted to athletes in local and international sports competitions and tournaments… sanctioned by their national sports associations” under NIRC Section 32(B)(7)(d). That framing should be read as the commonly-cited paraphrase of the provision rather than a verified verbatim quotation of the statute’s exact text, since it was not independently checked against the primary statute in this session — taxpayers relying on it for a specific filing position should confirm the exact wording with the BIR or a tax professional.

The practical distinction matters:

RA 10699 and Section 32(B)(7)(d) work alongside each other rather than being the same law: RA 10699 explains why the government is paying the incentive, and Section 32(B)(7)(d) is why that payment (and similar sanctioned-competition prizes generally) isn’t taxed as ordinary income.

How much are the government incentives, and are they still current? #

Historical reporting on RA 10699-era incentives commonly cites roughly ₱10 million for an individual Olympic gold medal, ₱5 million for silver, and ₱2 million for bronze, with team events prorated among members — but these figures should not be treated as the current, definitive schedule. Congress has periodically passed follow-on legislation increasing incentive amounts since RA 10699 took effect, and the Philippine Sports Commission administers the program and publishes the schedule actually in force. Before relying on a specific peso figure for planning, budgeting, or reporting purposes, confirm the current amounts directly with the Philippine Sports Commission or the BIR rather than repeating older news coverage.

Does private companies giving athletes bonuses get any tax benefit? #

RA 10699 also lets privately owned establishments that give cash incentives or discounts to national athletes and coaches similar to the government’s claim a tax deduction equivalent to the amount extended, subject to rules the Secretary of Finance issues on BIR’s recommendation. This is a separate benefit from the athlete’s own income tax exemption — it is a deduction on the paying company’s side, not an exclusion on the athlete’s side. A company considering this route should confirm the applicable implementing rules with the BIR before claiming the deduction, since RA 10699 conditions it on rules the Secretary of Finance has to issue.

Worked example: sanctioned competition prize vs. an ordinary contest prize #

A national athlete’s ₱2,000,000 international competition prize is exempt from income tax with no withholding at all, while an identical ₱2,000,000 prize paid out from a non-sanctioned local raffle or contest is subject to the general 20% final tax on prizes described in the sibling post above. The difference comes entirely from whether the award is a prize for winning in a competition sanctioned by the athlete’s national sports association — not from the peso amount involved:

In the second scenario, the organizer would withhold ₱400,000 (20% of ₱2,000,000) before releasing the net prize. In the first, because the exemption applies, no such withholding is made against the athlete’s incentive — which is also why the paying body does not issue a withholding certificate for that specific payment the way a raffle organizer would.

Frequently asked questions #

Are cash prizes won by Filipino athletes exempt from BIR income tax? #

Yes, in the specific case the BIR has publicly addressed: prizes and cash incentives awarded to Filipino athletes for winning in local and international sports competitions sanctioned by their national sports association are treated as exempt from income tax. This is understood to rest on NIRC Section 32(B)(7)(d), not on Republic Act No. 10699 itself.

Does RA 10699 grant the tax exemption for athletes’ prizes? #

Not directly. RA 10699 expanded the government’s incentive-payment program for national athletes and coaches who win in the SEA Games, Asian Games, and Olympic Games, and repealed the earlier RA No. 9064. The income tax exemption on athletes’ competition prizes is a separate legal basis, commonly understood to be NIRC Section 32(B)(7)(d), which excludes qualifying sports prizes and awards from gross income.

How much cash incentive does a Filipino Olympic medalist receive? #

Commonly reported figures cite roughly ₱10 million for an individual Olympic gold medal, ₱5 million for silver, and ₱2 million for bronze, prorated for team events, but Congress has periodically passed follow-on legislation adjusting these amounts. Readers should confirm the current incentive schedule with the Philippine Sports Commission rather than relying on historical figures.

Is every prize a Filipino athlete wins tax-exempt? #

No. The exemption BIR has described applies to prizes and cash incentives for winning in local and international sports competitions and tournaments sanctioned by the athlete’s national sports association. A prize or endorsement payment unrelated to a sanctioned competition result — for example, a raffle prize or a commercial endorsement fee — does not fall under this exemption and is taxed under the ordinary rules that apply to that type of income.

Can private companies get a tax benefit for giving athletes cash incentives? #

RA 10699 provides that privately owned establishments that give similar cash incentives or discounts to national athletes and coaches may claim a tax deduction equivalent to the discount or incentive extended, subject to rules issued by the Secretary of Finance upon recommendation of the BIR. This is a deduction for the paying company, distinct from the income tax exemption the athlete-recipient enjoys under Section 32(B)(7)(d).

Summary #

RA 10699 is the law that expanded and funds the Philippine government’s cash-incentive program for national athletes who medal in the SEA Games, Asian Games, and Olympic Games — it also lets private companies deduct similar incentives they extend. The actual income tax exemption the BIR has applied to athletes’ competition winnings rests on a separate provision, commonly cited as NIRC Section 32(B)(7)(d), which excludes qualifying sanctioned-competition prizes and awards from gross income. The two laws work together but answer different questions: RA 10699 is about the payment, Section 32(B)(7)(d) is about the tax treatment. Always confirm current incentive amounts with the Philippine Sports Commission and verify specific tax positions with the BIR or a qualified tax professional, since figures and implementing rules have changed since RA 10699 took effect. For how the general 20% final tax on prizes and winnings works outside this exemption, see Withholding Tax on Prizes and Winnings in the Philippines.