Change to Irish sports tax rules

[profitius]

Sports stars to benefit from tax change

Competitors will no longer have to end careers in Ireland to qualify for income tax relief on retirement

Irish sports stars will no longer have to finish their careers here to qualify for income tax relief on retirement under a change made in response to EU Commission concerns.
Under an amendment to the scheme published yesterday as part of the Finance Bill, a sportsperson may claim the relief if they are resident in an EEA or EFTA country at the time of retirement.
This comprises all the EU countries, as well as Iceland, Norway, Switzerland and Liechtenstein.
This opens up the possibility of an experienced rugby international such as Paul O’Connell spending the final couple of years of their career in France or England on big money contracts and still being able to claim the relief on their previous earnings in Ireland.
The total deduction that retiring sports persons can claim is now based on the Irish income arising from up to 10 of the 15 years prior to their retirement, including the year they retire. Previously, it was on the 10 years up to retirement.
The sports person is entitled to a relief of 40 per cent on their income from the sport. This cannot include earnings from sponsorship or image rights.

Permanently retired
The sports person must be permanently retired from their sport to claim the rebate from a scheme that was introduced by Charlie McCreevy during his time as minister for finance.
This change also opens up the possibility of a player such as Johnny Sexton being able to claim relief on the seasons he played for Leinster before heading to France earlier this year.
Under the old rules, Sexton would have had to return to a club in Ireland in advance of retiring from the sport to be eligible for this rebate.

Rugby benefit
This relief is open to a range of sports but mostly applies to rugby players given the professional structures in place for the four provincial teams operated by the Irish Rugby Football Union â€" Leinster, Munster, Connacht and Ulster.
However, professional golfers based here, or runners, boxers, jockeys or League of Ireland soccer players, might also be in the frame for a rebate on their taxes on retirement.

http://www.irishtimes.com/business/sectors/sports-stars-to-benefit-from-tax-change-1.1572370

I think it will benefit Ireland but not the provinces. It will encourage more older players to see out their career in France or England. That might be a blow but I think its good news as it clears the way for academy players. At the moment we have a crazy situation in Ireland where players have to wait 6 or 7 years to get a chance to establish themselves.

 

[snoopy snoopy dog dog]

I think it will benefit Ireland but not the provinces. It will encourage more older players to see out their career in France or England. That might be a blow but I think its good news as it clears the way for academy players. At the moment we have a crazy situation in Ireland where players have to wait 6 or 7 years to get a chance to establish themselves.

Exactly what I was about to post.

Take somebody like Donncha O'Callaghan for example. He is quite rightly looking to finish his career in Ireland since he'll get a massive tax rebate. While it's good for him, it's not so good for somebody like Dave Foley or Ian Nagle waiting in the wings. Under this new change, a player like O'Callaghan can earn a nice pay cheque in France for a year or two at the end of their career and not forfeit their rebate. Win win.

On the other end of the scale, it makes it less attractive to return once you've left the country since you'll still get the rebate on the part of your career that you spent here.

 

[Tony Manx]

Can only be good all round......good for the older players to seek pension contracts abroad and good for younger players who will get their chances earlier! I cannot see a player taking the overseas money wanting to come back to finish their careers as most will be seeing the end of their careers when they go and those like Sexton will find that there is money enough to compensate for staying abroad..............indeed, they might also prefer the lifestyle in France as Brennan and others did!!