Medal-winning athletes at the Olympic and Paralympic Games they will not have to pay taxes for the stipends that they receive for their achievements, as decided last week by the Minister of Economy, Avigdor Liberman.
Medals won at major sporting events are not supplemented by cash prizes, but like many countries, Israel offers scholarships to its medal winners through its Olympic committee. At this summer’s Tokyo Games, gymnasts Linoy Ashram and Artem Dolgopyat received NIS 500,000 each for winning gold medals, and taekwondo bronze medalist Avishag Semberg received NIS 250,000. The 11 members of the judo team who won a bronze medal were awarded NIS 50,000 each. A silver medal winner would have been entitled to 400,000 NIS.
The same cash prizes are also awarded to the medalists of the Paralympic Games that are being held, and Israeli competitors have won several medals.
Until now, athletes had to pay a 30% tax on their prizes, but the new exemption will allow athletes to keep all their winnings., in line with the trend recently established in the United States and other countries.
“This summer is full of national pride in Israeli sport. However, it is not enough to get excited and applaud, but we must reach the athletes that we will recognize and appreciate also in action, ”Liberman said in a statement.
“The hard work, the many hours on the mat or in the water, the many injuries and the moments of crisis, are moments that the public does not see on the screen. “For this reason, today I have approved a memorandum to modify the Income Tax Ordinance, which exempts the subsidy paid to athletes for winning a medal at the Olympic and Paralympic Games. This measure is not only for them, it is for all of us ”.
The United States passed a law in 2016 that exempts its medalists from having to pay taxes on their awards.
Israeli medal winners are compensated relatively well. In comparison, American gold medal winners receive $ 37,500, silver medal winners $ 22,500, and bronze medal winners $ 15,000, although they can earn much more with commercial endorsements.
