Cape Town – The Absa Premiership’s highest earners are reportedly said to be feeling the pinch as a result of income tax increases that can take up to 45% of a player’s salary.
During the budget speech last year, then minister of finance Pravin Gordhan introduced a higher rate of taxation for individuals who earned significantly more than the average population.
There was little respite in 2018 as new minister Malusi Gigaba also set stringent tax levels.
According to the SowetanLIVE website, players who are pocketing more than R1.5 million “pay up to 45% in tax” – players who earn above R708 310 will settle a 41% tax slip.
“Yeah, it’s quite a lot (45%). Back home you are taxed according to the number of years you can work or your contract because there are no guarantees that a person will work after their deal expires,” said an unnamed source.
“You end up being taxed [per month] more than someone who works for 20 years at a company, while footballers would spend maybe three seasons with a club. With our careers being so short, 45% is a lot. Not many can have a career of more than 10 years.
“We have families, we have children and things are getting more expensive. We would like it to change.”
The Sunday Times have also reported that if Mamelodi Sundowns forward Khama Billiat is to sign a new deal he wants his contract to reflect the tax increases, with the publication saying he was earning R160 000 per month but taking home just R90 000.
Source : sport24