Athletes’ taxable income
It seems that the Senate and House of Representatives have forgotten or missed a group of Filipinos that derive their income from “winnings.” These are the professional athletes, boxers, mixed martial arts fighters, billiard cue artists, bowlers, golfers, etc.
In the 1997 National Internal Revenue Code that our legislators want to amend, there was no clear set of guidelines on athletes’ income. However, Section 24 imposes 20 percent tax on certain passive income and interests, royalties, prizes, and other winnings if above P10,000.
The Senate and House versions of the Tax Reform for Acceleration and Inclusion Act of 2017 (Train) have no clear provision for the income of such earners. Our legislators have retained Section 24 and did not increase the amount of P10,000 exempted from tax, unlike wage earners, whose minimum taxable income has been adjusted to P150,000 from P10,000.
Winners receive as low as P20,000 from local professional boxing matches, up to P50,000 from billiard tourneys, and P20,000 for those who make the cut in golf. After taxes, there is barely enough left for daily expenditures.
Professional athletes need constant practice, healthy diets, and coaches and trainers to stay competitive; golfers have to pay caddies, managers take cuts from their earnings, not to mention entry fees and travel cost if the competition is far from their abode.
Our lawmakers should craft rules that help to improve the level of disposable income of our athletes. After all, once they become world class, they are a source of pride for the country, like Senator Manny Pacquiao and Efren “Bata” Reyes to name a few.
JAIME MARCOS, [email protected]
