IPL 2020: New VAT laws in UAE can affect IPL 2020 stakeholders, players’ salaries can also be taxed

The Indian Premier League (IPL) 2020 stakeholders are likely to be affected by the new taxation laws in the United Arab Emirates (UAE). Also, cricketers’ and franchisees’ salaries in UAE can be taxed as per the new taxation protocols.

The Indian Premier League (IPL) 2020 started two weeks ago. After the tournament was postponed due to many hindrances and altercations, the 13th edition of the IPL began on September 19 in UAE.

(PC- India TV News)

Will players’ salaries be taxed in UAE?

In IPL 2014, when 20 of the matches were played in the UAE, no such tax laws existed. However, as per the added Tax Laws introduced in the year 2018 in UAE, any service provided in the nation is taxed. Therefore, all player earnings are bound to be taxed.

“As per the new taxation norms in UAE, VAT will be levied on the IPL player salaries as they are providing services to the franchises”, said one of the representatives of Shuraa Tax Consultants based out of UAE.

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However, the franchises are not aware of any such taxation as of now. Therefore, the salaries are not deducted yet.

“We don’t have any idea about any such taxation. No one has informed us about it. So as of now, there will be no deduction in players’ salary”, said KXIP CFO LC Gupta.

VAT is defined as the tax on the supply of any goods/services for consideration by a person conducting business in the UAE. As per laws, the place of supply of any sporting service shall be where such services are performed.

As of now it is unclear whether BCCI has got into some understanding with the authorities on possible tax exemptions for all matters related to IPL. It is reported that it depends on whether sovereign exemptions are granted to IPL or not.

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