NEWSLETTER-2020-metin

312 NEWSLETTER 2020 players in sports branches subject to the league procedures. Accord- ing to these changes mentioned, above, from 01.01.2020 onwards, the following income taxes will be deducted from the salary and any pay- ment that qualifies as a salary, from the participants of sport branches that follow the league manner: • 20% from the participants of the first league; • 10% from the participants of the second league; • 5% from the participants of other level leagues; and • 5% from the payments of the participants of sport branches that do not follow the league manner, and the payments of the national sportspersons for taking part in international competitions. The Situation in Contracts Concluded Before 01.11.2019 and After 01.11.2019 The date 01.11.2019 has critical importance in terms of the amendments made by Law No. 7194. In the changes made regarding the withholding rate, sportsperson contracts issued before 01.11.2019, and which became valid, were excluded from the scope; namely, (i) income tax withholding to be made in wage payments made as of 01.01.2020 based on athlete contracts that have been concluded and became valid after 01.11.2019, or (ii) signed before 01.11.2019 for reasons such as extension of time or changes affecting the 20% fee rate is applied. Until the termination of the contracts, which were concluded and became valid before 01.11.2019, and did not make any changes affect- ing the fee or extension after this date, the rate of 15% continues to be applied in the withholdings to be made in the wage payments made based on these contracts. Declaration of Wage Payments to Sportspersons and Deductions Another important change made by Law No. 7194 concerns the declaration of sportspersons’ fees exceeding a certain amount in an