More than half of World Cup countries face extra costs as Fifa fails to agree US tax deal
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More than half of World Cup countries face extra costs as Fifa fails to agree US tax deal
"Fifa has had tax-free status in the US since the 1994 World Cup, but that exemption does not apply to all of the 48 qualifiers, whose national associations must pay a range of federal, state and city taxes on their earnings from the tournament this summer."
"The tax burden will fall disproportionately on many of the smaller national associations, whose governments do not have a tax treaty with the US."
"Cape Verde's players celebrate qualifying for the World Cup. The exemption does not apply to players' earnings, as under federal law athletes and artists are obliged to pay tax when they perform in the US."
"Despite the significant variance in tax liabilities, Fifa's operational budget for each of the qualifiers remains unchanged, leading to concerns among federations about potential financial losses."
More than half of the World Cup qualifiers face additional costs due to Fifa's failure to secure a blanket tax exemption with the US government. While Fifa has tax-free status in the US, this does not extend to all 48 qualifiers. Smaller national associations, particularly those without a Double Taxation Agreement with the US, will incur higher tax liabilities. Only 18 of the 48 qualifiers have signed such agreements, leaving many teams, including debutants Curacao and Cape Verde, at a financial disadvantage compared to larger nations like England and France.
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