Ministry of Youth and Sports orders clubs to withhold 1.5% from coaches' and players' payments
The ministry instructed clubs to immediately withhold tax deductions of 1.5% from the total amounts paid to local and foreign coaches and players and to transfer them to the General Tax Authority's account.
The Ministry of Youth and Sports directed sports clubs to immediately withhold tax deductions from coaches and players, whether they are domestic or foreign.
In an official letter sent by the ministry to the clubs, it affirmed compliance with Income Tax Law No. 113 of 1982 and the applicable tax instructions, with a 1.5% deduction to be made from the total amounts paid to coaches and players and the deducted sums transferred to the account of the General Tax Authority according to the mechanism specified in the letter.
The directive explained that cases in which coaches and players receive monthly salaries separate from the total contract amount are subject to direct deductions under Direct Deduction Instructions No. 1 of 2007.
The department concluded by stressing the necessity for clubs to comply with the applicable tax instructions and assessments to ensure unified deduction procedures and the fulfillment of their resulting legal obligations.
