Extra tax on a footballer's share in a transfer fee

A second court decision has been rendered in The Netherlands concerning the special extra employer’s tax on the payment to a football player of the share of a transfer fee.

The first court decision has been discussed by Dr. Rijkele Betten in GSLTR 2017/18 and had set aside the extra tax because of conflict with the European Convention on Human Rights 1950 (ECHR).

The new decision came to an opposite result, because it did not see a conflict of the Dutch tax rule with international rights. Therefore, the football club was obliged to pay the extra employer’s tax, in addition to that it had already deducted the top rate of payroll/income tax from the football player.