Taxman URA speaks out on Cheptegei, Kiplimo cash prize

Cheptegei defended his 10,000m world title winning gold while Kiplimo settled for bronze. The World Athletics body awards $70,000 for gold (Shs263m), silver-medalists Shs131m and bronze Shs82m.

Reacting on Twitter, the taxman says certain incomes by law are not taxed and they are referred to as exempt income.

Exempt income is listed in section 21 of the Income Tax Act (ITA).

Citing Section 21 (ab) of the Income Tax Act states, "an award received by a sportsperson as a reward from winning or participating in a sports competition is exempt from tax."

READ: Cheptegei pockets Shs263m for gold, Kiplimo Shs82m for bronze

“Kindly note that section 21 of the ITA , exempts from tax an award received by a sportsperson as a reward for winning or participating in a sports competition. This is purposed to enable Uganda to produce more sports stars. Cheptegold will smile all the way to the bank”, URA noted on Twitter.

Cheptegei has another shot at gold medal in the 5,000m race on Thursday. He will run alongside compatriots Peter Maru and Oscar Chelimo.

Furthermore, with Commonwealth Games due in Birmingham, United Kingdom 10 days away, Cheptegei will return for more action in both 10,000m and 5,000m.