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SMILING TO THE BANK! URA Breaks Silence on Taxing Joshua Cheptegei’s Cash Prize

SMILING TO THE BANK! URA Breaks Silence on Taxing Joshua Cheptegei's Cash Prize

Joshua Cheptegei and Jacob Kiplimo celebrate their victory. Photo by AFP

Uganda’s taxation body, the Uganda Revenue Authority (URA) has spoken out on reports that it was planning to tax the money earned by Joshua Cheptegei and Jacob Kiplimo for winning medals in the men’s world 10,000m in Oregon on July 17. 

Cheptegei retained his title after clocking a winning time of 27:27:43 to win gold at Eugene’s Hawyard Field. Stanley Waithaka Mburu of Kenya came second, winning silver, at reaching the finish line in 27:27.90. Uganda’s Jacob Kiplimo reached the finish in 27:27.97 to bag bronze.

For his gold medal, Cheptegei will get a cash prize of $70,000 (about Shs265m) while Kiplimo will return home with $22,000 (about Shs83m).

Some Ugandans had claimed that on returning home, Cheptegei and Kiplimo might have to give the tax man his share in form of taxes.

But URA, a central government body in charge of collection and assessment of specified tax revenue, administration and enforcement of laws relating to such revenue, has spoken out on the claims, making it clear that the athletes will not have their cash prizes taxed.

“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,” URA responded to the claims.

“Cheptegold will smile all the way to the bank.”

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