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PSL High Earners Stung by Income Tax

20180122 HWBLOG POSTIMG Soccer News 5

Some of the Premiership’s highest earners are reportedly said to be feeling the pinch as a result of income tax increases that can take up to 45% of a player’s salary. 

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During the budget speech last year, then minister of finance Pravin Gordhan introduced a higher rate of taxation for individuals who earned significantly more than the average population.

There was little respite in 2018 as new minister Malusi Gigaba also set stringent tax levels. According to the Sowetan: “Those who earn more than R1.5-million pay up to 45% in tax while earners above R708310 contribute 41%.

“These are taxpayers who earn roughly R125000 and R59000 per month respectively.”

The Sunday Times has already reported this season that Mamelodi Sundowns star Khama Billiat wants his new deal to reflect the tax increases, with the publication saying he was earning R160 000 per month but taking home just R90 000.

Nonetheless, a Sowetan source believed to be a PSL player added clarity on the matter saying: “Yeah, it’s quite a lot (45%). Back home you are taxed according to the number of years you can work or your contract because there are no guarantees that a person will work after their deal expires.

“You end up being taxed [per month] more than someone who works for 20 years at a company, while footballers would spend maybe three seasons with a club. With our careers being so short, 45% is a lot. Not many can have a career of more than 10 years.
“We have families, we have children and things are getting more expensive. We would like it to change.”

© TEAMtalk Media

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