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Proposals To Ease Tax On Filipino Individuals, Sportsmen

by Mary Swire, Tax-News.com, Hong Kong

25 September 2015


Separate measures have been introduced into the Congress of the Philippines to cut personal income tax and to examine the duties and taxes paid by Filipino athletes on awards and trophies.

Under the first proposal, introduced into the House of Representatives by Rep. Wes Gatchalian, the personal exemption for each individual taxpayer would be raised from the present PHP50,000 (USD1,065) to PHP100,000, and the additional exemption for each dependant would increase from PHP25,000 to PHP50,000.

Gatchalian said the proposal is designed to help low income taxpayers cope with the rising cost of living. "The proposal aims to raise the level of tax exemption according to present expenditure realities and give financial breaks to individuals in need. It seeks to ease the burden of low-income earners as a way of tax relief by implementing reasonable deductions and updated tax exemptions," he said.

Gatchalian has also called for a congressional inquiry into the policy of the Bureau of Customs (BOC) of imposing duties and taxes on trophies won in international competition by athletes from the Philippines. House Resolution 2373, cited the case of Jujeath Nagaowa, who won the WIBA international light flyweight crown but was taxed by the BOC for her winning belt. According to Gatchalian, Nagaowa was informed by the BOC that her championship belt had a dutiable value of PHP20,147.77, and that customs duty of PHP3,027.13 was payable, in addition to value-added tax of PHP2,782.

Gatchalian argues that under the Tariff and Customs Code of the Philippines, medals, badges, cups, and other articles bestowed as trophies or prizes or those received or accepted as honorary distinctions are exempted from import duties.

BOC Commissioner Alberto Lina has said that the Department will refund the duties and taxes paid by Nagaowa and is considering changing its policy on trophies and other prizes won by athletes.

TAGS: individuals | tax | value added tax (VAT) | Philippines | sportsmen | individual income tax

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