Players to pay 15pc income tax on rewards for Champions Trophy

KARACHI: The Federal Board of Revenue (FBR) will collect 15 percent income tax on the prizes and cash awarded to winning national team of the Champions Trophy 2017, official sources said on Wednesday.

The FBR officials said the tax treatment for prize winning is separate from annual income.

An official said that the cash prizes whether offered by government, private sector or individuals to the national team and management are subject to deduction of 15 percent withholding tax, which is the final tax.

The national team registered an enthralling victory against India by 180 runs to claim the 8th ICC Champions Trophy 2017 held in England and Wales from June 1-18. The win was celebrated by entire nation and the team along with the management received huge prizes from both government and non-government personalities and organizations.

The players received a cash prize of $2.2 million (around Rs229 million) from the International Cricket Council (ICC) for winning the trophy.

Later on June 21, Prime Minister Mian Muhammad Nawaz Sharif announced and directed release of Rs215 million through supplementary grant during the current financial year in favour of the Inter Provincial Coordination Division for the payment of a reward of Rs10 million each to the 15 players and Rs5 million each to the thirteen officials of management of Pakistan’s winning cricket team.

The prize will be handed over to the cricket team and management by the Prime Minister himself on July 05 at a ceremony to be held at PM House.

The tax officials said that on the amount issued by the prime minister, 15 percent tax is required to be deducted from players/officials who are income tax return filers and 20 percent from non-filers.

The official further said in case the tax is not deducted on prizes given then the recipient is required to declare the entire amount along with his total income in the annual income and pay separately by submitting a chalan.

The official said that the aggregate amount declared through annual income may attract 30 percent tax as per formula given in Income Tax Ordinance, 2001.

The official further said the prizes, paid in kind, such as immovable property/plots are to be determined separately for payment of income tax.

The official said the tax treatment of income derived by Pakistan Cricket Board (PCB) has been separately defined in the ordinance.

 The income of Pakistan Cricket Board derived from sources outside Pakistan including media rights, gate money, sponsorship fee, in-stadium rights, out-stadium rights, payments made by ICC, Asian Cricket Council or any other Cricket Board will be taxed at a rate of four per cent of the gross receipts from such sources.