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€62m funding to sports clubs from gambling taxes

By Tasos Dasopoulos

The continuation of the financing of sports clubs with 60% of the estimated annual increase in tax revenue from games of chance is also announced for 2023 by the Ministry of Finance, which has already disbursed 47 of the total 62 million euros it has committed for 2022 .

The measure of allocating part of the tax revenue from gambling for the financing of sports teams is applied from 2021 and already with the numbers 114021/11/3/2021, 294561/25/6/2021 and 620241/21/12/ 2021 Joint Ministerial Decisions, 62 million euros were allocated as an advance payment for the future revenues of the years 2021 and 2022 from the new way of taxing winnings from games of chance.

As provided in the relevant decisions, the amount used as a basis for calculating the amount of funding amounts to 60% of the estimated increase in the amount from gambling taxation of article 79 of Law 4764/2020 that appears in the Analytics Revenue Account 1150489001 “Other taxes on winnings from lotteries and games of chance”, for the years 2021 and 2022 in relation to the year 2020.

It is noted that since the implementation of the new mechanism, 47 million euros had been collected until June 2022, while the advance payment of 62 million euros is expected to exhaust the financing amount for the period until the end of this year. However, the measure is of a permanent and lasting nature.

In the meantime, measures have been implemented specifically to support sports clubs such as:

– From 1/1/2020 the taxation of the income of athletes, coaches and referees with the scale of employees and pensioners, if their annual income amounts to an amount of up to 40,000 euros, and with a rate of 22% and exhaustion of the tax liability , if this income exceeds 40,000 euros.

– The measure of belonging to the reduced VAT rate. 13% of sports tickets, for the duration of the COVID-19 pandemic, i.e. from 1.9.2020 to 30.6.2022

– In the last two years, 17.7 million euros in refundable advances, 2 million euros through the fixed costs program, around 70 million euros for specialist compensation were allocated to companies active in the sectors of sports group activities and the exploitation of sports facilities purpose of their employees and coverage of their insurance contributions (approximately 10,000 employees of the sector were covered), an additional 10 million euros for special purpose compensations and increased special purpose compensation to small businesses in the sector and approximately 10 million euros for rent payments of these businesses.

In total, the businesses of the sector were strengthened with measures of 110 million euros to deal with the adverse consequences of the pandemic. Funding is scheduled to be provided in January, front-loaded on revenue to be collected in 2023.

Source: Capital

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