TAX INCENTIVES GRANTED TO NATIONAL ATHLETES AND COACHES

Read also: TAXATION OF EMPLOYEES’ BENEFITS

• Qualified National Athletes and Coaches shall be entitled to twenty percent (20%) sales discount, on sales amount exclusive of VAT.

• Benefits and privileges may be availed of by qualified National Athletes and Coaches only upon presentation of a valid PNSTM ID and Booklet

• Privately-owned establishments granting sales discounts and incentives shall enjoy tax deductions equivalent to the discounts extended to qualified National Athletes and Coaches.

National athletes and coaches can now enjoy 20 percent discounts in the purchase of goods and services similar to incentives granted to senior citizens and persons with disabilities (PWD).

 

The Bureau of Internal Revenue (BIR) has issued Revenue Regulations No. 13-2020, which states that:

The Chairman of the Philippine Sports Commission (PSC) shall issue a Philippine National Sports Team Identification Card and Booklet (PNSTM ID and Booklet) to the National Athletes and Coaches. Benefits and privileges may be availed of by qualified National Athletes and Coaches only upon presentation of a valid PNSTM ID and Booklet. Only those with valid PNSTM ID and Booklet shall be accepted and granted sales discounts and incentives by privately-owned establishments.

Privately-owned establishments granting sales discounts and incentives shall enjoy tax deductions equivalent to the discounts extended to qualified National Athletes and Coaches.

GRANT OF SALES DISCOUNTS TO QUALIFIED NATIONAL ATHLETES AND COACHES

Qualified National Athletes and Coaches shall be entitled to twenty percent (20%) sales discount, on sales amount exclusive of VAT, on the following establishments relative to the sale of goods and services for their actual and exclusive use or enjoyment:

1. 1. Transportation services such as:
      1. Domestic air and sea transportation based on the actual fare, including baggage allowance.
      2. National land transportation privileges based on the actual fare such as, Public Utility Buses or Jeepneys (PUBS/PUJS), Taxis, Asian Utility Vehicles (AUVS), Shuttle Services, Railways Transportation such as Light Rail Transit (LRT), Metro Rail Transit (MRT), Philippine National Railways (PNR), Transport Network Vehicles Services (TNVS) and such other similar modes of transportation that may be constructed, established and operated by public or private entity.
   2. Hotels, Resorts and other Similar Lodging Establishments – the discount shall be for room accommodations and other amenities offered by the establishment such as but not limited to hotel-based parlors and barbershops, restaurants, massage parlor, spa, sauna bath, aromatherapy rooms, workout gyms, swimming pools, Jacuzzis, KTV bars, internet facilities, food, drinks and other services offered;
   3. Restaurants – the discount shall be for the purchase of food, drinks, dessert and other consumable items served by the establishments offered for the consumption of the general public; 
      1. For dine-in services, the privilege must be personally availed of by the national athlete or national coach and no proxies or authorization in favor of another person will be honored.
      2. The discount shall not be applied to “children meals” unless the national athlete falls under the establishment’s definition of “children”, and to “precontracted” party packages or bulk orders.
      3. Food, drinks and other consumable items purchased by the national athletes or national coaches shall be processed separately as an independent transaction from their non-eligible companions to ensure that it is for their actual and exclusive consumption.
      4. The discount shall apply to take-out/take-home/drive-thru orders provided that the national athlete or national coach personally orders and presents the required PNSTM ID.
      5. The discount shall apply for delivery orders by providing the PNSTM ID number upon ordering and presentation of PNSTM ID and Booklet upon delivery,
      6. For transactions in paragraphs d and e, the most expensive meal combination (MEMC) shall apply to food purchases by the national athlete or national coach.
   4. Recreation centers – The discount shall be on fees, charges and rentals for the use of any sports facilities or equipment and other accessories and gadgets relative to the exclusive use or enjoyment of the sports and recreational services including golf cart rentals and green fees, or admission fees in ballroom dancing, yoga, badminton courts, bowling lanes, table or lawn tennis, workout gyms, martial arts and other facilities.

      Stock, non-profit and exclusive sports and country clubs are not mandated to grant the discount-herein-provided. However, restaurants and food establishments inside the clubs which are independent concessionaires and sell goods that are not considered consumable items under the club membership contract, shall grant the twenty percent (20%) discount to the national athlete or national coach.

   5. Medicine and Drug Purchases – The discount shall apply to the purchase of generic or branded medicines and drugs by or for the national athlete or national coach, including purchase of vaccines, vitamins and mineral supplements as prescribed by a physician at any drug store, pharmacy and other similar establishments, including those pharmacies on hospitals and clinics.

      For this purpose, the term “medicines” shall refer to both prescription and nonprescription medicines, and articles approved by the BFAD-DOH, which are intended for use in the diagnosis, cure, mitigation, treatment or prevention of disease in man; but do not include food and devices or their components, parts, or accessories.

   6. Sports Equipment Purchase – The discount shall apply to the purchase of any sports equipment for the actual and exclusive use or enjoyment of the national athlete or coach.

      A sports equipment or sporting goods refers to any object used for sport or exercise which may include:

      1. Game equipment such as but not limited to balls, racquets, nets, goals and bats.
      2. Player equipment such as but not limited to footwear, protective equipment and training equipment.

         To avail the discount, the appropriate National Sports Association (NSA) of the national athlete or national coach shall endorse the purchase of sports equipment or sporting goods by inscribing a notation on the Booklet of the type of sports equipment to purchase and its corresponding quantity restriction. Such purchase shall likewise be recorded in the Booklet.

   7. Admission Fees Privilege – A minimum of twenty percent (20%) discount shall be applied to admission fees charged by theaters, cinema houses, concert halls, circuses, carnivals and other similar places of culture, leisure and amusement including but not limited to fairs, parks, museums, exhibit halls and theme parks.

---

Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

All rights reserved.

---

SUBSCRIBE NOW FOR MORE LEGAL UPDATES!

[email-subscribers-form id=”4″]