Parliament of Bashkiria proposed changing Tax Code for sports development

The State Assembly - Kurultai of the Republic of Bashkortostan will submit to the State Duma a draft federal law “On amending Article 217 of Part Two of the Tax Code of the Russian Federation,” the press service of the republican parliament told Bashinform News Agency.

“The bill concerns the taxation of prizes received by athletes at prestigious competitions and aims to develop elite sports in the country by excluding Russian athletes from participating in almost all international competitions. To maintain competitive activity, Russian President Vladimir Putin instructed to ensure that commercially attractive multi-stage open sports tournaments with the participation of foreign athletes, foreign sports clubs, and teams are held in our country. But financially, there is one important nuance here. Prices received by athletes at the Olympic, Paralympic Games, and other prestigious international competitions are not subject to personal income tax. While prizes won at international sports tournaments within Russia are subject to taxation. Exempting athletes from paying personal income tax on prizes at such competitions will increase interest in the games held in Russia, their prestige, and ensure wide international representation,” said Chairman of the State Assembly Konstantin Tolkachev.

According to the speaker of parliament, adopting the law will make the participation of our athletes in such competitions more productive, and the results of personal and team achievements will be more objective, which will positively impact the development of elite sports in the country.

The bill provides for amendments to Article 217 of Part Two of the Tax Code of the Russian Federation in terms of extending the regime of exemption from personal income tax to prizes in cash or in kind received by athletes, including disabled athletes, based on the results of winning awards at official international sports competitions included in the Unified calendar plan of interregional, all-Russian and international physical education events and sports events held on the territory of the Russian Federation, with the participation of athletes from three or more states.

Author: Leila Aralbaeva