The lowest tax on sport in Europe
According to the Draft Law on income tax for citizens, athletes are considered the most favored layer of the society, with the ten percent income tax rate, declared Mr. Bozidar Djelic, Serbian Minister of Finance and Economy, after talks with the representatives of sport leagues and associations, emphasizing that this tax rate is among the lowest in the country, and most probably the lowest tax on sport in Europe.
As an example, Minister Djelic suggested that those who earn up to 600,000 dinars annually should pay the effective ten percent tax rate, while those whose income exceeds this sum, should be additionally taxed by another four percent, according to Beta broadcast.
According to expectations, the implementation of the modified fiscal laws, if adopted by the Parliament, should begin on January 1, 2003. Besides the Draft Law on income tax for citizens, it is also question of debate on the matter of transfers and the Draft Law on games of chance.
When the Law on games of chance was legally operational, until the end of the eighties, the revenue from this tax was specially spent on amateur sports, reminded Mr. Djelic, adding that it would bi possible again, and that therefore we can expect the allocation of 15 to 20% of some 60 million Euros expected to be collected from this Law enforcement.
Minister Djelic also reminded that we have the most favorable treatment regarding sponsorship in sports in Europe, enabling the companies to allocate into sports sponsorship up to 3.5 percent of the total annual profit of the company, making this portion exempted from the payment of the tax on corporate profit.