URA will not tax Nakaayi's sh220m prize money
Oct 02, 2019
Citing Section 21 (ab) of the Income Tax Act, URA said, "an award received by a sports person as a reward from winning or participating in a sports competition is exempt from tax."
Ecstatic: Nakaayi celebrates after winning gold for Uganda. AFP PHOTO
Uganda Revenue Authority (URA) will not levy any tax on Halimah Nakaayi's $60,000 (about sh220m) prize money after she won a gold medal in 800m final at the World Championships in Doha.
Citing Section 21 (ab) of the Income Tax Act, URA said, "an award received by a sportsperson as a reward from winning or participating in a sports competition is exempt from tax."
"We celebrate her for demonstrating the spirit of Uganda! She shocked the world with her IAAF Doha 2019 800m finals victory. What shouldn't shock you is the fact that she is going to dance all the way to the bank," URA said on their twitter handle.
Nakaayi and Nanyondo celebrate after the 800m final in Doha
Nakaayi clocked one minute 58 seconds to win gold at the Khalifa International Stadium in Doha to become only the second Ugandan woman after Dorcus Inzikuru to emerge champion at the biennial event. Inzikuru won gold in the steeplechase in the 2005 edition in Helsinki. Winnie Nanyondo, the other Ugandan in the 800m final finished in fourth place earning $15,000 (sh54.7m).
Athletes at the 2019 World Championships are taking home huge paycheques. Gold medalists are being paid $60,000(sh219m) while silver medalists are banking $30,000(sh105m) in prize money.
Section 21 of the Income Tax Act
— Uganda Revenue Authority (@URAuganda) October 1, 2019
(1)The following amounts are exempt from tax.
(ab) an award received by a sports person as a reward from winning or participating in a sports competition.
We celebrate her for demonstrating the spirit of Uganda! pic.twitter.com/uJfnoO0ua5
The cash stretches to the eighth finisher courtesy of the International Association of Athletics Federations. A strong team of 21 Ugandans is part of hundreds of athletes eyeing a share of over US$7.5 million in prize money in the 10-day competition.
Joshua Cheptegei who won $30,000 for his 10,000-meter silver at the last edition is another gold medal favourite for Uganda. Cheptegei is together with another Ugandan medal hopeful Jacob Kiplimo in the 10,000m.
Ronald Musagala (1500m) and Stella Chesang (10,000m) and Solomon Mutai (marathon) are Uganda's other medal hopes. Davis Kamoga, Dorcus Inzikuru and Solomon Mutai (2015) are the other Ugandans who have won these prizes.
Nakaayi celebrates after crossing the finishing line. AFP PHOTO
Kamoga won 400m silver in Athens in 1997 behind Michael Johnson of the United States of America.
Should Cheptegei take gold in Doha, he will be crowning a very successful season also winning $50,000 (sh182.5m) for winning the 5000m in the Diamond League last month.
The only other Ugandan sportsmen who have won much for barely an hour's work are boxers John "The Beast" Mugabi and Kassim "The Dream" Ouma.
Mugabi signed off a $1m (sh3.7bn)- the equivalent of about sh5bn today, for his 1986 world title fight with Marvin Hagler.
RELATED STORIES