Japan Okays New Tax Exemption Rules For 2002 World Cup

by Mary Swire, Tax-News.com, Hong Kong

09 November 2001

Japan's lower house has passed a bill exempting officials and associations from paying taxes when they participate in next year's world cup finals which will be jointly co-hosted by Japan and South Korea. The next step for the bill is the upper house but politicians say they anticipate the bill to pass smoothly through the house and to be fully approved during the current session of Parliament.

The bill intends to avoid double taxation and allows officials and referees from FIFA to be exempt from income taxes. In addition, the distribution of fees from FIFA to the football associations of paticipating countries in the finals will be exempt from corporation taxes, income taxes and business taxes.

Lower house spokesperson, Kumi Hanafusa, explained to reporters: 'The bill is to avoid double taxation, that is the basis of this bill, but Japan has a treaty with most of the countries such as France and Switzerland and this bill will not affect these countries. People or associations from countries like Argentina could be taxed though if the bill is not passed.'

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