Dutch athletes who win medals in Tokyo can only enjoy their prize money for a short period of time because they often have to pay half of that money to the tax authorities. In many countries, athletes are allowed to keep their bonus.
You will get 30,000 euros for a gold medal, 22,500 euros for silver and 15,000 euros for bronze, says Vibe Bring, EY’s tax adviser. ‘Athletes usually pay taxes in the country where the plate is won. But often the organizing country does not charge any tax, which should be allowed to organize the competition as a commercial argument. The same is true in Japan. ‘
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‘Success Line’
When the athlete then returns to the Netherlands, the full prize money must be taxed. Brink says if you don’t have a generous sponsorship deal, it will suck. ‘In the US you can have the full amount. At first they did the same as in the Netherlands, but in 2016 a bill to abolish the ‘victory tax’ was passed. ‘
However, brushing a hand on the heart as a taxpayer when it comes to athletes is not so easy. Margin: ‘The question is where do you start: why shouldn’t this apply to Tour de France, Wimbledon or Nobel laureates?’
Save
There are other ways, says the tax adviser. For example, you may choose to defer payment of the prize money. “You can save money so the athlete can use it to cover costs for years to come.”
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