Do booster clubs need to file taxes?

Sports clubs pay taxes

And the fight is not balanced, according to his criteria. “We have to be much more efficient in everything we do, make fewer mistakes, because the other major professional leagues enjoy advantages that we don’t have”.  Despite the fact that four of UEFA’s top six clubs currently play in LaLiga. “It’s now, it’s right now, when we have the opportunity to hook up. If we let it pass us by, when we want to realize it, we’ll have to assume it’s too late.”

In 2005, a law came into force throughout the country that, with the aim of attracting leading international professionals, scientists, professors and people of culture, meant that when signing a new contract they would not be required to pay more than 24% tax. Positive discrimination. This was popularly known as the Beckham Law. In 2014, athletes were excluded from this rule.

Obligations of a sports club

The creation of a non-profit sports club within our fitness center can bring us a number of benefits. Users are increasingly looking for a sense of belonging, where they feel they are part of the project, they are recognized and have a group where they are understood. This has clear results, those who are already users will refuse to change or stop being users of the gym, plus for those who are not users, it can be a claim and thus attract new customers. Here we must analyze between what sport, facilities, trends, age of the people to create one or two modalities in the sports club and can cover the largest possible population.

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The creation of a non-profit club has a series of fiscal benefits. The clubs do not pay VAT or Corporate Tax. However, if the club performs any activity for which it receives money that does not belong to the members, this activity will be subject to VAT. For example, organizing a summer camp. For membership dues, a receipt is issued without VAT. With the reform of the Patronage Law in December 2015, contributions to non-profit entities allow tax relief from 35% in the IS, with a limit of 10% of the taxable base of the tax period, up to 40% if they repeat in aid, and 75% on the first 150 euros.

Donations to sports clubs

We begin our article dedicated to finances and taxes with a brief trivia quiz in which we want to check if we know what the most relevant sportsmen of the moment earn. Answer these five simple questions -you only have to choose one of the two possible answers- and we will start asking ourselves where this money goes, how much taxes they pay and how salaries work in sport…

Taxation in sports is usually a topic that escapes from the typical issues we deal with in this blog, which mostly deals with topics such as sports forecasts or reviews events of the 2021 sports calendar and analysis of matches, athletes, current events and concepts related to betting. But the reality is that the 2021 sports calendar, there are important dates that have to do with the fulfillment of tax obligations.

First of all, we have to explain the meaning of the term taxation. Under the concept of taxation, we include the set of laws and rules of compulsory compliance for individuals and companies, which govern in a state, in all matters relating to taxation and contributions.

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Sports Club Tax ID

If you have not yet constituted your association, in this article you can see the differences between Association and Foundation. As you will see, these are mainly focused on the form and requirements for the constitution and, above all, in terms of operation. As they are two different legal forms, it is necessary to analyze what is of most interest.

Since 2014 there have been a series of changes in the taxation of non-profit associations. These changes mainly affect the tax obligations of this type of entities. Specifically, to the obligation to file Corporate Income Tax.

With Law 27/2014 and the subsequent correction made in Royal Decree-Law 1/2015, the entities referred to in the regulations will be obliged to file Corporate Income Tax and declare all their income, both exempt and non-exempt.

The exception to the above rule is for partially exempt entities if their income in the tax period does not exceed €75,000, provided that the income from non-exempt income also does not exceed €2,000 and is subject to withholding.

Do booster clubs need to file taxes?
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