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How are professional football player transfers taxed in South Africa
ABSTRACT In a document entitled Guide on the Taxation of Professional Sports Clubs and Players, the South African Revenue Service (“SARS”) states that it is unlikely that professional soccer clubs could be said to trade in player contracts, and accordingly, player transfers are unlikely to constitut...
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| Format: | Thesis |
| Language: | Eng |
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Department of Commercial Law
2024
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| _version_ | 1867613613655588864 |
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| access_status_str | Open Access |
| author | Nqiwa, Fezile |
| author2 | Titus, Afton |
| author_browse | Nqiwa, Fezile Titus, Afton |
| author_facet | Titus, Afton Nqiwa, Fezile |
| author_sort | Nqiwa, Fezile |
| collection | Thesis |
| description | ABSTRACT In a document entitled Guide on the Taxation of Professional Sports Clubs and Players, the South African Revenue Service (“SARS”) states that it is unlikely that professional soccer clubs could be said to trade in player contracts, and accordingly, player transfers are unlikely to constitute revenue receipts or expenditure as anticipated by the Income Tax Act. The author critically evaluates SARS's assertion by applying the applicable football regulations and well-established South African common-law tax principles to practical scenarios premised upon common player transfer methods, which include combinations of permanent player transfers, temporary player transfers, free player transfers, a bridge player transfer, a buy-out player transfer and buy-back player transfers. The key outcomes and recommendations from this paper are that: I. the commercialisation of football has influenced a change in the player transfer market – clubs are increasingly engaging in speculative player transfer practices. Accordingly, SARS should acknowledge these developments and publish a guideline dedicated to the tax treatment player transfers. II. the Income Tax Act should be amended to include a limited tax exemption on training compensation received by clubs who train young players to become professionals, as the development of young players is social good which should be encouraged and rewarded. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/39780 |
| institution | University of Cape Town (South Africa) |
| language | Eng |
| last_indexed | 2026-06-10T12:38:56.314Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2024 |
| publishDateRange | 2024 |
| publishDateSort | 2024 |
| publisher | Department of Commercial Law |
| publisherStr | Department of Commercial Law |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/39780 How are professional football player transfers taxed in South Africa Nqiwa, Fezile Titus, Afton Law ABSTRACT In a document entitled Guide on the Taxation of Professional Sports Clubs and Players, the South African Revenue Service (“SARS”) states that it is unlikely that professional soccer clubs could be said to trade in player contracts, and accordingly, player transfers are unlikely to constitute revenue receipts or expenditure as anticipated by the Income Tax Act. The author critically evaluates SARS's assertion by applying the applicable football regulations and well-established South African common-law tax principles to practical scenarios premised upon common player transfer methods, which include combinations of permanent player transfers, temporary player transfers, free player transfers, a bridge player transfer, a buy-out player transfer and buy-back player transfers. The key outcomes and recommendations from this paper are that: I. the commercialisation of football has influenced a change in the player transfer market – clubs are increasingly engaging in speculative player transfer practices. Accordingly, SARS should acknowledge these developments and publish a guideline dedicated to the tax treatment player transfers. II. the Income Tax Act should be amended to include a limited tax exemption on training compensation received by clubs who train young players to become professionals, as the development of young players is social good which should be encouraged and rewarded. 2024-05-31T09:36:24Z 2024-05-31T09:36:24Z 2023 2024-05-31T06:41:26Z Thesis / Dissertation Masters http://hdl.handle.net/11427/39780 Eng application/pdf Department of Commercial Law Faculty of Law |
| spellingShingle | Law Nqiwa, Fezile How are professional football player transfers taxed in South Africa |
| thesis_degree_str | Master's |
| title | How are professional football player transfers taxed in South Africa |
| title_full | How are professional football player transfers taxed in South Africa |
| title_fullStr | How are professional football player transfers taxed in South Africa |
| title_full_unstemmed | How are professional football player transfers taxed in South Africa |
| title_short | How are professional football player transfers taxed in South Africa |
| title_sort | how are professional football player transfers taxed in south africa |
| topic | Law |
| url | http://hdl.handle.net/11427/39780 |
| work_keys_str_mv | AT nqiwafezile howareprofessionalfootballplayertransferstaxedinsouthafrica |