Taxation of Athletes and Sports Clubs

The focus of both athletes and sports clubs is, of course, on achieving the best possible sports results. Many athletes and sports clubs, on the other hand, do not focus adequately on tax matters, which may have significant financial consequences.

Athletes who are paid a salary by a club must, of course, pay tax of it. You should be aware of the special tax rules governing different types of employee benefits, for example if the club offers a free car and/or free accommodation. Many athletes receive a tax-free mileage allowance from their club. It is important to know that a number of conditions must be met for mileage allowances to be tax-free.

In recent years, there has been a number of cases in which SKAT has taken the view that such allowances did not qualify for tax exemption. This has had serious consequences for the parties involved in the form of fines and extra tax bills.

It is also very important to be aware of the special tax rules that apply when you move to and from Denmark, including the rules governing the end/start of tax liability, the rules on the taxation of sign-on fees and the extent to which athletes can make use of the gross income tax scheme (also known as the researcher scheme).

We have extensive experience in providing advice to sports clubs in connection with all aspects of taxation.

Our advisory services cover, for example:

  • Taxation when moving to/from Denmark
  • Gross income tax scheme
  • Taxation of employee benefits
  • Taxation of investments
  • Tax in connection with the conclusion of contracts
  • Depreciation and amortisation for tax purposes
  • Tax deductions
  • Tax planning