Fifa is currently in complex negotiations with US authorities regarding tax exemptions for the Club World Cup's 32 competing clubs. Launched with a substantial prize fund, each club could face hefty tax bills without agreements, especially since the schedule was established on short notice. Tax rates vary significantly across states, complicating the financial implications for clubs based on where they play. Additionally, some states do not recognize federal double taxation treaties, adding another layer of financial uncertainty for these clubs as they prepare for the tournament.
Fifa is attempting to negotiate tax exemptions for clubs participating in the Club World Cup, potentially facing significant tax burdens without agreements in place.
The short notice of the Club World Cup schedule hindered Fifa's ability to secure exemptions similar to those for the 2026 World Cup.
Clubs participating in the Club World Cup could face varying tax bills based on their match locations, with potential losses due to different state tax rates.
Certain US states' non-recognition of federal double taxation treaties could financially disadvantage specific clubs, raising concerns over fairness in tax treatment.
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