More than half of the nations qualified for this summer's World Cup face additional costs and potential losses after Fifa failed to secure a blanket tax exemption with the United States government. The tax burden will fall disproportionately on smaller national associations whose governments lack a double taxation agreement (DTA) with the US.
Of the 48 qualifiers, only 18 have signed a DTA with the US, mostly European nations plus Australia, Egypt, Morocco and South Africa. Co-hosts Canada and Mexico also benefit. This leaves debutants like Curaçao and Cape Verde facing higher tax liabilities than England or France, whose DTAs exempt them from federal taxes.
The exemption does not cover players' earnings, but it applies to backroom staff and coaches. Brazil's manager Carlo Ancelotti will pay tax in both Brazil and the US, while England's Thomas Tuchel will only be taxed in the UK. The Brazilian federation is likely to cover Ancelotti's extra bill, but smaller associations face severe financial strain.
Fifa's fixed operational budget of $1.5m per team, combined with reduced daily allowances ($600 per person, down from $850 in 2022), exacerbates the issue. The US federal corporate tax rate is 21%, and income tax for high earners is 37%. State taxes vary, from 0% in Florida to 13.3% in California.
Tax consultant Oriana Morrison said: 'Many smaller teams, for whom this windfall would have made a huge difference, are going to be penalised with massive US tax bills. That money could have developed their football industries locally.' Canada and Mexico have granted tax exemptions to all associations, lowering costs for teams playing group games there.
Fifa declined to comment, but sources said the governing body is working with national associations to provide help and assistance on tax issues.
