economy
More than half of World Cup countries face extra costs as Fifa fails to agree US tax deal
Fifa has not agreed tax exemption with US government
TL;DR
- Fifa's failure to negotiate a blanket tax exemption with the US government is causing additional costs for over half of the World Cup qualifiers.
- Countries without a double taxation agreement (DTA) with the US, particularly smaller nations, face higher federal, state, and city taxes.
- European countries like England and France, with DTAs, will have lower tax liabilities compared to debutants like Curaçao and Cape Verde.
- While players' earnings are taxed, exemptions for backroom staff and coaches will vary based on tax treaties.
- Fifa's operational budget for each team is fixed at $1.5m, with reduced daily allowances despite increased costs.
- Tax exemptions granted by co-hosts Canada and Mexico will lower bills for teams playing games in those countries.
- State tax levels also vary significantly across the US, further impacting costs for participating nations.
- Sources indicate Fifa is working with national associations to provide assistance with tax issues.