Tax calculations in Turkish football are changing: Transfer costs may rise

Football economics expert and Certified Public Accountant Evren Özcan stated that tax practices in Turkish football will become more decisive in the transfer market. According to Özcan, while the net earnings expectations of football players remain unchanged, who bears the tax burden will directly affect the total costs for clubs.

Speaking on the Ters Köşe program broadcast on Radyospor, Özcan said that while clubs in the Süper Lig apply withholding tax on payments made to players, a tax declaration obligation also arises for football players who earn high incomes.

''The earnings obtained by athletes fall under wage income. For Süper Lig players, the club applies withholding tax and pays it to the state. However, football players who earn high incomes are also required to file a tax return.''

Özcan emphasized that including provisions in football player contracts stating that taxes will be covered by the club does not eliminate the player's responsibility from the perspective of the tax administration. Stating that "the taxpayer is the football player themselves," Özcan explained that foreign players leaving Turkey can also face tax liabilities from past periods.

A NEW BURDEN ON TRANSFER COSTS

Stating that if the tax burden remains on the football player, transfer negotiations will change, Özcan expressed that players will not give up the net wages they demand, and therefore gross costs may increase.

''Regardless of whether they are Turkish or foreign, the net figures players want will not change. For this reason, the asking prices will increase. Someone who receives 1 lira will ask for 1.20 this time.''

Özcan said that the assumption of taxes by the club in the transfer of foreign football players to Turkey has provided a significant advantage until now. However, pointing out that this calculation may change in the new era, Özcan assessed that "the 2027-2028 transfer season will not be easy in financial terms."

Arguing that the perception that football players do not pay taxes is incorrect, Özcan stated that significant amounts of tax are collected from athletes who receive high wages. Expressing that some football players are among the top taxpayers, Özcan said that the "tax haven" perception in the public is misleading.

Özcan also stated that image rights hold an important place among non-wage income. He noted that some top-level football players commercialize their image rights through their own companies, and that this income item can be covered by clubs and sponsors through different models in sponsorship agreements.

Stating that for football players coming to Turkey from abroad, the tax burden has now become a factor that can affect the transfer decision, Özcan expressed that leagues with tax advantages, such as Saudi Arabia, can stand out at this point. Özcan explained that a recent transfer did not take place due to the tax burden.

Touching on agent commissions, Özcan said that the current fee structure should be discussed in terms of transparency. Stating that the "Clearing House" central payment system on FIFA's agenda could increase oversight in agent payments, Özcan emphasized that the agent system in Turkey should also become more transparent.

News Source: 12punto