Government Incentive Mandated by Law (P10million)

- Tax exempted; Section 32 (B) (7) (d) of the tax code. Such provision states:

“The following item(s) shall not be included in gross income and shall be exempt from
taxation under this Title: “All prizes and awards granted to athletes in local and international sports
competition or and tournaments whether held in the Philippines or abroad and sanctioned by their
national sports association."

Donations given by businesses, private individuals and entities

- Tax exempted; Section 32 (B) (3) of the Tax code provides:

" Gifts, Bequests, and Devises. - The value of property acquired by gift, bequest, devise,
or descent: Provided, however, That income from such property, as well as gift, bequest, devise or
descent of income from any property, in cases of transfers of divided interest, shall be included in gross
income."

NOTE: donors have to pay the donor's tax due on these items in order for Hidilyn to be exempted.

Incentive from Zamboanga City LGU

- Tax exempted;

AN ORDINANCE FURTHER AMENDING ORDINANCE NO. 231, SERIES OF 2000, ENTITLED "AN ORDINANCE
PROVIDING FINANCIAL INCENTIVES TO ATHLETES/PLAYERS AND COACHES/TRAINERS WHO CAN ACHIEVE
HIGH HONORS IN THE OLYMPIC GAMES, SEA GAMES AND ASIAN GAMES"

Tax exemption still covered under Tax Code Section 32 (B) (3)

Harry Roque v Frank Drilon Comment

I am more inclined to agree with Roque's statement. The benefit of tax exemption hinges upon
enacted laws. Drilon's reliance on RA 10699 is misplaced. The said law did not specify tax exemption on
the cash incentives to be received by the awardee. But evenso, Hidilyn is still exempted from being taxed
under the provisions set in the Tax code Section 32 (B) (3).