"Fifa has secured a significant breakthrough that should result in the national associations being exempt from federal taxes, although many will still have to pay state and city tax on their World Cup earnings."
"The main requirements for a tax exemption under section 501(c)(3) are that the organisation in question must not benefit any individual private shareholders or take part in any political activity."
"US treasury approval would save the national associations millions and ease some of their fears about the cost of taking part in the World Cup, with a combination of tax rates and travel and hotel expenses their main concerns."
"At a meeting of Fifa Council in Vancouver it was agreed to increase payments by 15%, with the pot now totalling $871m, and all 48 countries guaranteed to receive $12.5m."
Fifa is negotiating a tax exemption for all 48 World Cup qualifiers with the US treasury, which could save national associations millions. While federal tax exemptions are likely, state and city taxes may still apply. The exemption under section 501(c)(3) requires organizations to avoid benefiting private shareholders and political activities. Fifa has been tax-exempt since 1994 but lacked similar exemptions for its members. Canada and Mexico have already granted tax exemptions, addressing concerns about costs associated with the tournament.
Read at www.theguardian.com
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