Jul 11, 2010, 5:11 pm
[quote name='suricata' date='11 July 2010 - 02:14 PM' timestamp='1278850482' post='23704']
I have to explain a couple of things about the tax law here. The previous tax was 25% of the gross salary. With the new tax law, it is now 45% of the gross salary. Tax will always mean gross. Net means after taxes. Simple economics. The new law is not 80% of the gross. A player with a gross contract of 1.8mil euros will be getting about 1 mil (45%), not 360k like with an 80% taxation. What some clubs officials claimed is that if they want to pay a player 1mil euros net, they would have to pay 1.8mil gross, so an aditional 80% as tax. That however is not an 80%, as taxation is always to be counted from the gross ammount. Others claimed that the new taxation is about 80% higher than the old one (45% to 25%) which is correct. But under no circumstances is the new tax 80% of the gross, that is just absurd.
[/quote]
I think you are misunderstanding. There is a new 80% tax being placed on the clubs that they did not have to pay before. That is what I am talking about. An 80% tax increase.
I have to explain a couple of things about the tax law here. The previous tax was 25% of the gross salary. With the new tax law, it is now 45% of the gross salary. Tax will always mean gross. Net means after taxes. Simple economics. The new law is not 80% of the gross. A player with a gross contract of 1.8mil euros will be getting about 1 mil (45%), not 360k like with an 80% taxation. What some clubs officials claimed is that if they want to pay a player 1mil euros net, they would have to pay 1.8mil gross, so an aditional 80% as tax. That however is not an 80%, as taxation is always to be counted from the gross ammount. Others claimed that the new taxation is about 80% higher than the old one (45% to 25%) which is correct. But under no circumstances is the new tax 80% of the gross, that is just absurd.
[/quote]
I think you are misunderstanding. There is a new 80% tax being placed on the clubs that they did not have to pay before. That is what I am talking about. An 80% tax increase.