Awards and prize money for Olympic athletes: the government is working to establish a legal framework for taxation - other sports

Awards and prize money for Olympic athletes: the government is working to establish a legal framework for taxation – other sports

Finance Minister Vincent van Bettieghem (CD&V) is working on a legal framework to tax prize money that citizens win through exceptional performance, such as the Olympics. This should provide clarification about which premiums are taxable and which are not.

A statement from his cabinet on Tuesday said, “Minister van Bettieghem understands the fact that the extraordinary achievements of citizens are important propaganda for our country.”

However, the tax exemption on premiums or award money should not be decided arbitrarily. It would be particularly inappropriate for the Secretary of the Treasury to decide with his thumbs up or down which achievements of athletes, authors, filmmakers, or scientists are exceptional enough to be excused.

tax

Brussels newspaper Evening He wrote on Tuesday that unlike the Olympics in London and Rio, Belgian athletes have to pay a tax on the premiums they earned because they finished in the top eight in Tokyo.

When someone wins a prize money abroad, or simply earns income there, it is important the international agreements that Belgium has with that country. Belgium has tax treaties with one hundred countries. In addition to closing tax loopholes, they must prevent a person from being taxed twice on income, assets, and profits.

In the case of Olympic athletes, it concerns a treaty with Japan. This states that any income earned in Japan may be taxed by Japan first. However, Japan has chosen not to tax dividends premiums, so they are automatically subject to the Belgian tax system and income tax law. This is the rule for every Belgian who earns an income in Japan.

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The Finance Council concludes that “the Minister also wishes to stress that the tax authorities certainly do not target the Olympic athletes’ earnings bonuses with a separate tax, but are striving for a sustainable solution rather than a one-time reform.”

installments

The gold medal in Tokyo brought in 50,000 euros (12,500 for an athlete in a team sport such as hockey), the silver medal was accompanied by a bonus of 30,000 euros and a bronze medal of 20,000 euros. Up to €5,000 can be earned from eighth place.

A statement from his cabinet on Tuesday said, “Minister van Bettieghem understands the fact that the extraordinary achievements of citizens are important propaganda for our country.” However, the tax exemption on premiums or award money should not be decided arbitrarily. It would be particularly inappropriate for the finance minister to decide with his thumbs up or down which achievements of athletes, authors, filmmakers or scientists are exceptional enough to warrant an exemption. Games in London and Rio, Belgian athletes have to pay tax on the premiums they earned because they finished in the top eight in Tokyo. When someone wins a prize money abroad, or earns income there, it is important the international agreements that Belgium has with that country. Belgium has tax treaties with about a hundred countries. In addition to closing tax loopholes, they must prevent a person from being taxed twice on income, assets, and profits. In the case of Olympic athletes, it concerns a treaty with Japan. This states that any income earned in Japan may be taxed by Japan first. However, Japan has chosen not to tax dividends premiums, so they are automatically subject to the Belgian tax system and income tax law. This is the rule for every Belgian who earns an income in Japan. “The Minister would therefore like to emphasize that the tax authorities certainly do not target the Olympic athletes’ earnings bonuses with a separate tax, but strive for a sustainable and not a one-time, reform,” concludes the Finance Council. A gold medal in Tokyo yielded 50,000 euros (12,500 per athlete in a team sport such as hockey), a silver medal accompanied by a bonus of 30,000 euros and a bronze medal of 20,000 euros. Up to €5,000 can be earned from eighth place.

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