Sports Development Tax: Everything you need to know

Benign Economy True Sports
Truth Info
July 21, 2022
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3 minutes read

Sport represents today 2% of world GDP, and only 0,5 % from that of Africa. On the African continent, the development of sport brings economic and societal development challenges. It is in this dynamic that incentive measures for the development of sport have taken shape in the Republic of Benin..

According to the reforms undertaken by the Beninese government, the big enterprises, federations and sports companies must position themselves as active players by getting involved in the development of sport in Benin. So, with a view to mobilizing resources to finance sports activities in Benin, a Sports Development Tax (TDS) was instituted via the finance law 2019. The funds that will be made available to stakeholders for the smooth operation of this new measure are intended to : Create vocational training centers; Supporting young talents; Create and maintain infrastructure dedicated to the development of athletes; Have athletes supervised by coaches; Improve the living conditions of athletes in clubs, etc.

The provisions relating to the TDS are set out in Articles 218 at 222 of the General Tax Code (CGI) and concern large companies whose turnover is greater than or equal to one billion (1 000 000 000) FCFA. The companies that are exempt from paying the tax are those that already own or co-own a professional sports club involved in a national championship and carry out operating or investment expenditure for the benefit of sports federations benefiting from State subsidies. for an amount greater than or equal to the tax to be paid.

The development of sport in Benin can be seen through the dedication of all actors in the public or private sectors ready to invest in making local championships attractive.. It is important that this new dynamic takes place with the establishment of well-defined organizational structures so that financial management is done with transparency in order to grow and guarantee a certain influence of sport in Benin..

Fabrice COMLAN and Tania GAYE