The heartbreaking triumph of La Scaloneta unleashed an unprecedented wave of euphoria in the streets. The team led by Messi traveled to Argentina on Monday to lead the celebrations in the country, while the AFA prepares to distribute the prizes with the planteHim for winning the cup at the World Cup. It’s about a income of US$52 millionwhich will be distributed among the personnel, even if the remuneration will not be the same for everyone.
This is because players reside in different countries, with different taxes and exchange rules. Now, since the Argentine Football Federation is the one that will receive the funds and is an entity that resides in the country, Dollars must be settled in the single foreign exchange market at the wholesale rate of $173.60 (approximately $9,027 million), as according to the IMF’s balance of payments manual they are “services, recreational and cultural”.
The Central Bank also establishes that the services have an entry and settlement obligation. However, since most of the players reside abroad, except Franco Armani, the AFA You can pay in foreign currency at the official value. “The AFA must come in and liquidate them, has access to the official market to pay players who have tax residence abroadso he settles it, but he also pays in official dollars,” they confirmed in the BCRA.
The prizes are 42 million dollars from FIFA and 10 million dollars from Conmebol because it is a team from the South American continent. Payment is an arrangement of words. In general, the AFA stay with 60 or 70% and the rest is distributed among the 26 players called up, who in turn often make a “vaquita” and the part that corresponds to them is shared with the rest of the delegation and with those excluded due to injury.
“The payment, if it is framed as an obligation and the Central Bank sells the dollars to transfer them abroad, players would lose nothing, very littlethose who would lose the most are those who are in the country,” said tax official Sebastián Domínguez.
Being a non-profit civil association, the AFA does not have to pay any type of fund income tax for the awards it receives. “It is free from earnings”, confirmed in AFIP, without excluding the possibility that they are joined by some tax. However, each of the players has to pay taxes according to the tax system of the country where he is a tax resident. If the AFA kept 60% and the rest was split among the 26, each member would receive $646,000.
“The sure one will be joined in Argentina is Franco Armani, who depending on the prize amount have to pay the winnings at the rate of 35%, and Personal property, if applicable. However, it could not be the only one, since for the cancellation of the Argentine tax residency, not only the transfer to another country must be analyzed, but several requirements such as the time elapsed since the transfer abroad” explained María Paula Veliz, manager of Argentine expansion fees.
Source: Clarin
