The good campaign of Brazilians in the Club World Cup, with the four representatives from the group stage and Fluminense reaching the semifinals, yielded a total joint award to the quartet of about US $ 155.1 million (R $ 859.6 million) in the United States.
Of the total collected by Brazilians, approximately US $ 48.7 million (R $ 270 million), or about 31.3% of the total, will be retained via the payment of taxes, both in the United States and Brazil, according to calculations by Luis Garcia, tax lawyer at USP and partner of Tax Group and MLD Advogados Associados.
Just for the participation in the expanded World Cup, the South American clubs have already pocketed US $ 15.21 million (R $ 84.3 million). In the group stage, each victory added another US $ 2 million (R $ 11.1 million), and the draws, $ 1 million (R $ 5.5 million).
By reaching the round of 16, the clubs were also entitled to US $ 7.5 million (R $ 41.5 million), and US $ 13.125 million (R $ 72.8 million) for advanced quarterfinals. The semifinalists earned another US $ 21 million (R $ 116.4 million).
The deputy will still be entitled to another US $ 30 million (R $ 166.3 million), and the champion, at US $ 40 million (R $ 221.7 million).
In the United States, Garcia explained that clubs are submitted to paying tax with the US government in the “FDAP – Fixed, Determinable, Annual or Periodical Incom” category. The rate is 30% of the gross award received directly in the country.
In Brazil, the four clubs will also be subject to the 1.1% IOF (Financial Operations Tax) on net remittance received from abroad, already deducted the United States taxation.
Because they are adherents of the non -profit associative model, Palmeiras, Fluminense and Flamengo have guaranteed the exemption of other taxes on international awards.
“The exemption given to the non-profit civil associations is consistent with the institutional and associative nature of these clubs, provided that the legal criteria for the application of curse in the end activity, such as accounting transparency and prohibition of the distribution of profits,” said Livia Heringer, lawyer of Ambiel Advogados and Master in Tax Law.
Garcia pointed out that there are doubts in the legal environment around professional soccer clubs still behave as true non -profit entities, given their structure, millionaire salary, economic objectives and remuneration of leaders.
“Therefore, exemptions have been widely questioned by regulatory and supervisory bodies, especially the IRS.”
“Due to tax secrecy, imposed by the National Tax Code, revenue does not comment on a situation involving certain taxpayers,” the IRS said in a statement.
In the case of Botafogo, for joining the SAF model (anonymous soccer company) at the end of 2021, the club is also subject to the specific tax regime for SAF (specific taxation of football – TEF), with a unified rate of 5% on the net value received in the United States, already deducted from tax, and also from IOF.
The SAFs are under a special, unified and simplified tax regime, valid for five years, with a rate on gross revenue, encompassing IRPJ, CSLL, PIS/PASEP, COFINS and EMBATER social security contribution.
After the fifth year, the rate drops to 4%. “This regime is mandatory for newly created SAFs, but optional after the initial period, and may migrate to real or presumed profit, according to general tax legislation,” Garcia explained.
According to Ambiel’s lawyer, the SAF tax regime, when consolidating federal taxes in a unified and reduced rate, provides greater clarity, predictability and legal certainty.
“This is something that is essential for the attraction of private investments. This model has been shown to be efficient not only from a fiscal point of view, but especially as an instrument of professionalization of sports management, contributing to greater governance, transparency in club finances and sustainable insertion in the global football market,” he said.
It added it to be important to follow the impacts of the tax reform, which may increase the real load of the SAFs, with the introduction of CBS (Contribution on Goods and Services) and IBS (Tax on Goods and Services) in the calculation of the specific tax regime. “This point still depends on regulation and interpretation by the IRS.”
