Morocco to Implement Income Tax on Athletes and Coaches Starting 2020

The application of this provision of the 2020 Finance Bill concerns players and coaches of all sports disciplines, reports the newspaper Assabah.

Income Tax will be levied on the salaries of players, coaches and staff, for the benefit of the Public Treasury, including signing bonuses, match bonuses and performance bonuses. As for clubs that will be converted into sports companies, they will pay Corporate Tax and VAT, except in case of exemption.

In addition, leagues, clubs and federations recognized as being of public utility will have to pay tax on income from the operation of real estate or businesses (shops, restaurants, bars, or other commercial establishments), according to the same source.

Debated since 2012, this tax reform had difficulty being effective due to some pockets of resistance. Included in the 2020 Finance Bill, its implementation will soon become a reality.