Sports teams

Sports team taxations

Income Tax Exemption for Amateur Sporting Associations

• The income of amateur sporting associations is exempt from tax. This exemption applies to associations whose sole or main objective is to foster and control any outdoor sport, whose members consist only of amateurs or affiliated associations with amateur members

Expenditure on Sports Sponsorship:

• Expenditure incurred by a person sponsoring sports, with prior approval from the Cabinet Secretary responsible for sports, is deductible from their taxable income. This provision aims to encourage sponsorship and investment in sports activities and facilities 

Committee Recommendations

• The Departmental Committee on Finance and National Planning recommended the removal of a proposal that sought to impose income tax on income earned by amateur sporting associations.

• This recommendation was made to support investments in the sports sector and to incentivize the nurturing of sporting talent, thereby ensuring the viability of amateur sports clubs.