NEWSLETTER-2020-metin

310 NEWSLETTER 2020 Taxation of Sportsperson in Light of Current Changes* Att. Özge Kısacık Introduction Today, sports such as basketball, volleyball and tennis and, espe- cially, football, have become an industry, as well as being a branch of the sports industry. Large sums of money spent on sports competitions, players, jerseys, sponsorships and a large audience are proof of this. Many incentives and privileges have been provided from past to present for the development of sports and athletes, which hold an important place, both in our country, and in the world. However, through Law No. 7194 on Digital Service Tax and Amendment of Cer- tain Laws and Law Decree No. 375, published in the Official Gazette on 07.12.2019 (“Law No. 7194”), some limitations were imposed on the tax incentives provided to sportspersons. Detailed explanations regarding these changes are included in the Income Tax General Com- muniqué under Serial No. 311, published in the Official Gazette on 27.05.2020. Through the regulations made in Law No. 7194 and Income Tax Law No. 193 (“ITL”), the withholding rate of the wages, and wages earned by the sportspersons in the top leagues in sports branches subject to the league procedures, were increased from 15% to 20%. On the other hand, there has been no change in the withholding rates for payments made to other sportspersons. In addition to the amend- ment on the withholding tax rate, through Law No. 7194, the practice of declaring the wages of sportspersons exceeding a certain amount through an annual income tax return has been introduced. * Article of September, 2020