France dreams of itself as a (fiscal) football paradise

by time news

2023-10-19 19:43:58

Among the 358 amendments retained by the government in the text of the finance bill imposed thanks to article 49.3 of the Constitution, one, carried by Renaissance deputies, proposes a particular tax status to international sports federations.

To encourage them to set up their headquarters in France – as is already the case for the powerful International Automobile Federation (FIA) – France is considering a real tax haven regime for international federations. “recognized by the International Olympic Committee”.

Currently numbering thirty-fourmost of these today have their headquarters in Switzerland where they benefit, for their lucrative activities, from a very generous tax rate of 4.25%.

Fifa particularly coveted

To align France with Swiss taxation, the amendment supported by MPs Renaissance proposes to exempt sports federations from corporate tax and the contribution on business added value (CVAE) but also, for their employees, from income tax for five years.

Particularly targeted by France: the International Football Federation (Fifa), whose headquarters is in Zurich but which, disrupted in recent years by Swiss justice, is seeking to leave Switzerland. And why not come to Paris, where it was based from its foundation in 1904 until 1932?

The question was raised in 2019 between its president Gianni Infantino and Emmanuel Macron, particularly with regard to Fifa’s marketing activities. But, wanting a similar regime for international organizations, the governing body of world football had backed down, scalded by French taxation.

Economic and image benefits

A simple office was set up in 2022 in the Hôtel de la Marine, Place de la Concorde in Paris, to manage relations with African federations in particular. A tax ruling recognized its employees as posted workers, exempting them from income tax for two years. But one ” reflection “ had been open about the opportunity for a real fiscal status for international federations.

The goal is to attract activities to France that are considered positive, both in terms of image and finances. A study by the International Academy of Sports Sciences and Technology estimated the economic impact of international sports federations in Switzerland at 1.68 billion Swiss francs (1.77 billion euros) in 2019, notably thanks to more than 3,000 direct jobs or 45,000 business nights.

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