The American authorities are preparing to impose taxes on the profits of clubs participating in the 2025 Club World Cup, which is set to take place in the United States, according to reports from Egyptian media.
These taxes will apply to payments made by FIFA to the participating teams, as well as the salaries and bonuses paid by the clubs to their players, coaches, and accompanying members for any activities related to the tournament during its duration on American soil.
The forthcoming regulations stipulate that each participating club will bear U.S. tax obligations, covering all payments received from FIFA, in addition to those paid to individuals associated with it for activities related to the competition.
FIFA will also be required to withhold taxes from these payments at a rate that could reach a maximum of 30%, which may affect the financial revenues allocated to clubs for their participation in the tournament.
However, there is a possibility to alleviate this tax obligation if the team qualifies for protection under a tax treaty between its country and the United States, allowing for exemptions or reductions in the tax withholding rate.
In the absence of a tax treaty, the team may choose to file a direct U.S. tax return and commit to paying any taxes owed, as a legal alternative to avoid preemptive withholding by the American tax authorities.
