Of the four Brazilian teams at the Club World Cup, Botafogo only should suffer, in Brazil, a 5% discount on the awards received by results in the international competition. The particularity is because the club is a corporation of football (SAF), subject to specific tax regime.
Fluminense, Palmeiras and Flamengo have more traditional administrative models and will not suffer the discount on the values by the Brazilian tax authorities. The difference in treatment in the case of SAFs was clarified in a statement released by the IRS on Monday.
“In the case of a soccer company (SAF), subject to the specific tax regime of football, the award is achieved by the unified payment (IRPJ, CSLL, PIS/Pasep, Cofins and Social Security Contribution) under the 5%rate,” he said.
Continues after advertising
Botafogo is a SAF controlled by Eagle Football Holdings, which has American businessman John Textor as the main shareholder.
Brazilian clubs totaled US $ 155.09 million (about R $ 845.67 million) in awards for participation and performance in the competition organized by FIFA in the United States.
An amount equivalent to 30% of the amount should be collected in the US, which apply taxes on commercial activities carried out by foreign entities in the country. The rate is still discussed between FIFA and the US government.
Continues after advertising
From the amount that clubs are entitled to, US $ 15.2 million (R $ 84.5 million) were paid to each even before the start of the competition. This would be a way to avoid the discount of the US government. However, some experts believe this revenue should also be taxed by the United States.
Both wins and classifications for the following stages of the competition yielded cash prizes.
Without discounts, the values for the four national teams were:
Fluminense: US $ 60.84 million (R $ 331.66 million)
Continues after advertising
Botafogo: US $ 26.71 million (R $ 145.60 million)
Flamengo: US $ 27.71 million (R $ 151.06 million)
Palmeiras: US $ 39.84 million (R $ 217.18 million)
