If Kim does win a slam, how much of the prizemoney goes into tax in BEL vs AUS? - TennisForum.com
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post #1 of 18 (permalink) Old Sep 18th, 2004, 07:06 PM Thread Starter
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If Kim does win a slam, how much of the prizemoney goes into tax in BEL vs AUS?

1 million dollars I believe is the amount.
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post #2 of 18 (permalink) Old Sep 18th, 2004, 07:16 PM
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I'm pretty sure that taxes are paid in the country were the tournament is held... so f.i. taxes paid on the prize money of the US Open, are paid in the US...

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post #3 of 18 (permalink) Old Sep 18th, 2004, 07:23 PM Thread Starter
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oh....so career earning is taxed this way....
Do they get taxed again in their own country though?
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post #4 of 18 (permalink) Old Sep 18th, 2004, 07:53 PM
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Quote:
Originally Posted by TennisVSTennis
oh....so career earning is taxed this way....
Do they get taxed again in their own country though?
Generally speaking no, the international system tries to eliminate double taxation of an individual's income so that the same dollars are not taxed twice as that would significantly damage free trade internationally.

Now very, very generally speaking most countries work under treaties that allow the residence country to cede primary tax jurisdiction to the source country either by way of total or partial exemption of that income. (What Sarah said above.) Or by taking the amount of tax paid to the source country and granting credit against the home/residency country's tax. UNLESS, the two countries in question, under treaty, agree to allow for the source country to cede tax jurisdiction to the residence country in exchange for the same treatment of their own residents. So... a tax lawyer from Belgium would probably be able to give better answer.
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post #5 of 18 (permalink) Old Sep 18th, 2004, 09:31 PM Thread Starter
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thx....so there is no difference in the tax paying if Kim changes her nationality then.
Good to know....
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post #6 of 18 (permalink) Old Sep 18th, 2004, 10:08 PM
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Originally Posted by TennisVSTennis
thx....so there is no difference in the tax paying if Kim changes her nationality then.
Good to know....
Huh. I'm not sure about that. I assume you mean if she becomes an Oz citizen and resides there?

I would guess then that she would be exclusively subject to Oz's tax jurisdiction. Though I'm not AT ALL familiar with the Belgian tax system. Anyway doing that may be better for her since last time I checked I thought the Australian tax burden was generally much lighter than the Belgians. But that's just based on an overall average, I'm not sure how that would actually work out for someone in Kim's tax bracket in practice. Maybe someone from either of these countries could lend a hand here?!?
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post #7 of 18 (permalink) Old Sep 18th, 2004, 10:28 PM
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Quote:
Originally Posted by pokey camp
Huh. I'm not sure about that. I assume you mean if she becomes an Oz citizen and resides there?

I would guess then that she would be exclusively subject to Oz's tax jurisdiction. Though I'm not AT ALL familiar with the Belgian tax system. Anyway doing that may be better for her since last time I checked I thought the Australian tax burden was generally much lighter than the Belgians. But that's just based on an overall average, I'm not sure how that would actually work out for someone in Kim's tax bracket in practice. Maybe someone from either of these countries could lend a hand here?!?
You know, in Belgium, taxes are incredibly high, but on the other hand everyone has a quality access to health care or social protection!
I don't think Kim would be willing to switch nationality to win a few more euros/dollars, when she has already won so much in her carreer that she doesn't have to work for the rest of her life to live decently!

...
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post #8 of 18 (permalink) Old Sep 18th, 2004, 11:10 PM
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I thought that taxation was the primary reason why so many players reside in Monacco, because they have no taxes. And I also thought that places in Europe and Russia the tax percentage is over 50%. And why russians tend to play so much tennis.
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post #9 of 18 (permalink) Old Sep 19th, 2004, 10:23 AM
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It goes in the country where the tournament is played and then for the rest, it goes for Belgian taxes

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post #10 of 18 (permalink) Old Sep 19th, 2004, 11:01 AM
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The tax percentage in Belgium for companies (Kim has been registered as a company) is 33.99 % (we recently got a deduction on the percentage, it used to be 40.17 %) of the profit you make in a year (+ some costs that aren't accepted as costs in Belgium ...). But as the price money has already been taxed in the country where it was 'earned' it doesn't have to be taxed again in Belgium (except if the tax in the other country was too low (like Monnaco)).
But for the rest of her 'income' (sponsormoney, ...) she has to pay the tax in Belgium.
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post #11 of 18 (permalink) Old Sep 19th, 2004, 11:05 AM
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Some very educated people here on the tax matters! Very good!

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post #12 of 18 (permalink) Old Sep 19th, 2004, 11:07 AM
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Quote:
Originally Posted by Sarah<Kim-fan>
I'm pretty sure that taxes are paid in the country were the tournament is held... so f.i. taxes paid on the prize money of the US Open, are paid in the US...
Exactly, that's why tournaments like Dubai are so popular .
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post #13 of 18 (permalink) Old Sep 19th, 2004, 06:23 PM
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Quote:
Originally Posted by teigetje
The tax percentage in Belgium for companies (Kim has been registered as a company) is 33.99 % (we recently got a deduction on the percentage, it used to be 40.17 %) of the profit you make in a year (+ some costs that aren't accepted as costs in Belgium ...). But as the price money has already been taxed in the country where it was 'earned' it doesn't have to be taxed again in Belgium (except if the tax in the other country was too low (like Monnaco)).
But for the rest of her 'income' (sponsormoney, ...) she has to pay the tax in Belgium.
Ah, very good. Thanks teigetje , so Belgium as Kim's residence country does cede tax jurisdiction to the source country/the place where the tournament is held. That's the general framework internationally, but I wasn't sure about Belgium specifically.

Now about the partial exemption... I wonder what gets interpreted as too low? In Kim's case I wonder if that gives her a disincentive to play those types of tournaments, since in many cases it would be better for her to play in tournaments where she knows she will get a total exemption. (Because of the Belgians higher tax rate.)

Last edited by pokey camp; Sep 19th, 2004 at 06:42 PM.
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post #14 of 18 (permalink) Old Sep 19th, 2004, 07:28 PM
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Quote:
Originally Posted by pokey camp
Now about the partial exemption... I wonder what gets interpreted as too low? In Kim's case I wonder if that gives her a disincentive to play those types of tournaments, since in many cases it would be better for her to play in tournaments where she knows she will get a total exemption. (Because of the Belgians higher tax rate.)
Belgian tax law has a list of "tax-paradises" , in which the taxes are considered too low. On money earned in those places, you pay Belgian taxes. Examples of such Tax paradises: Cayman Islands, Andorra, Bahamas, Bermuda, Grenada, British Virgin Islands,... (and I just looked it up, Monaco is not on that list - to my surprise )
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post #15 of 18 (permalink) Old Sep 20th, 2004, 12:23 AM
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I hate paying taxes...I know that players get taxed 30% of their prize money in the US. The top players who have agents, probably get another 10-15% taken off the top for management fee's...so they go home with significantly less than they made.

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