Imputation of income: transferring image rights to third parties, for example.
Posted: Mon Dec 23, 2024 4:10 am
The income that football players (professionals) obtain as a result of the exploitation of their image rights must be taxed by the Personal Income Tax (IRPF), depending on the tax classification will be:
Employment performance: the use of the player's image is inherent to the work, that is, his image is related to his employment contract.
Income from movable capital: direct receipt by the player who owns his image rights. The professional himself is dedicated to the exploitation of his image, contracting with companies that he authorizes to use his image.
Income from economic activities: the essential thing is that the professional is self-employed and one of his main activities is the exploitation of his image rights.
Law 13/1996 , of December 30, on fiscal, administrative and social measures, regulates sri lanka phone code the tax treatment of these image rights. The 85/15 rule is introduced , meaning that only a portion of the income from the player's image rights will be subject to corporate tax, i.e., the income from work activity must be greater than 85% and only the remaining 15% may be taxed as corporate income through corporate tax.
There are three subjects:
The Club: pays the footballer 85% of his salary and the remaining 15% in image rights.
Company: the 15% received from the Club is subject to corporate tax at 28%. However, under the new criteria of the Tax Agency, the company must have acquired from the footballer the right to exploit his image at market value .
Footballer: 85% of the salary is taxed at 47% by personal income tax. The athlete transfers his image rights to a company, and must do so for the market price and with the obligation of having a contract between the parties.
Tax fraud in image rights
The type of tax fraud that is being committed usually consists of the athlete transferring his image rights to a company (usually foreign) without activity and this company pays what it receives from advertising, and in many cases part of the salary of the professionals. None of this is declared to the Spanish Treasury. Simulation of transfer of image rights .
Another type of tax fraud is the case of transferring image rights to a company to manage them. This company, which usually belongs to the player himself, charges for the exploitation of the image and pays corporate tax, lower than what would have to be paid through personal income tax.
Employment performance: the use of the player's image is inherent to the work, that is, his image is related to his employment contract.
Income from movable capital: direct receipt by the player who owns his image rights. The professional himself is dedicated to the exploitation of his image, contracting with companies that he authorizes to use his image.
Income from economic activities: the essential thing is that the professional is self-employed and one of his main activities is the exploitation of his image rights.
Law 13/1996 , of December 30, on fiscal, administrative and social measures, regulates sri lanka phone code the tax treatment of these image rights. The 85/15 rule is introduced , meaning that only a portion of the income from the player's image rights will be subject to corporate tax, i.e., the income from work activity must be greater than 85% and only the remaining 15% may be taxed as corporate income through corporate tax.
There are three subjects:
The Club: pays the footballer 85% of his salary and the remaining 15% in image rights.
Company: the 15% received from the Club is subject to corporate tax at 28%. However, under the new criteria of the Tax Agency, the company must have acquired from the footballer the right to exploit his image at market value .
Footballer: 85% of the salary is taxed at 47% by personal income tax. The athlete transfers his image rights to a company, and must do so for the market price and with the obligation of having a contract between the parties.
Tax fraud in image rights
The type of tax fraud that is being committed usually consists of the athlete transferring his image rights to a company (usually foreign) without activity and this company pays what it receives from advertising, and in many cases part of the salary of the professionals. None of this is declared to the Spanish Treasury. Simulation of transfer of image rights .
Another type of tax fraud is the case of transferring image rights to a company to manage them. This company, which usually belongs to the player himself, charges for the exploitation of the image and pays corporate tax, lower than what would have to be paid through personal income tax.