AfriPulse
Bafana Bafana players are set to return to South Africa with a big payday, thanks to their performance at the FIFA World Cup. But how much of their earnings will be taxed by SARS?
South Africa was knocked out by Canada in the Round of 32 this week.
BAFANA PLAYERS – HOW MUCH DID THEY EARN, AND HOW MUCH WILL BE TAXED?
According to reports, Bafana Bafana players earned around R1,6 million each as part of the FIFA World Cup prize money.
The figure was calculated from FIFA’s R222 million payout, which was split into R155.4 million (70%) being allocated to SAFA, and the remaining R66.6 million (30%) being split amongst players.
But are the players actually millionaires, or does SARS take a big piece of their pie?
According to financial advisor Munya Shumba, the footballers could walk away with considerably less than what they were promised.
On his TikTok channel, Modern Money with Munya, the expert presented the case of Bafana captain, Ronwen Williams.
As Williams is already earning six figures annually at Mamelodi Sundowns, he falls into a higher tax bracket, with every cent made above his salary being taxed at 45%.
Before SARS could get their share of his cash, players, via FIFA, must first pay 30% of the prize money to the US government as federal income tax on US-sourced earnings.
Because of SARS’s double tax treaty, it would take the balance of the 15% tax money.
Therefore, Williams could be paying as much as R480 000 in US tax and R240 000 to SARS.
This would leave him with just R880 000.
@money_modern How much will Bafana players give to SARS? – #capetown #southafrica #fifa #worldcup ♬ original sound – Modern Money With Munya
Source: The South African | Read the Full Story…
