What a bummer.
“The Bureau of Internal Revenue (BIR) yesterday said cash prize and other awards received by Pia Alonzo Wurtzbach for winning the Miss Universe title are definitely subject to income tax,” reports Jun Ramirez in Tempo.
“Top revenue officials who requested anonymity said that as a Filipino citizen, Wurtzbach’s earnings from within and outside the country form part of her gross earnings subject to the maximum income tax rate of 32%,” the report noted.
The BIR official pointed out that “only Congress can exempt Wutzbach from paying taxes by coming out with a special legislation.”
The report then pointed out that “BIR oldtimers recalled that lawmakers granted tax exemption privileges to Gemma Cruz-Araneta when she won the Miss International title in 1964, in recognition for being the first Filipino and Asian to receive the prestigious award.”
If you must know, “under Section 32 of the Tax Code cash and other prizes are exempted from taxation if the awards are bestowed in recognition of religious, charitable, scientific, artistic, educational, and literary achievement.”
Moreover, the law “also prescribes that the recipient was selected without any action or participation on his part to enter the contest or proceedings, and that he is not required to render future service as a condition to receiving the prize or award.”
That said, the report indicated that “as the current Miss Universe, Wurtzbach is required render one-year promotional service to the pageant organizers.”
