Renting of a premises by an athlete

Renting of a premises by an athlete

 

According to the individual tax interpretation issued by the Director of the National Tax Information an athlete who, in order to represent his club, rents a property outside his place of residence, is not entitled to reduce the revenue for rental costs if he has not been conducting a business activity.

In the individual interpretation issued on May 17th, 2019, despite the claimant’s arguments that costs of renting the premises are necessary for him to be able to train and earn the money, and therefore inseparable from his income, the Director of the National Tax Information considered them to be strictly personal, unrelated to the source of income, and therefore not deductible.

The answer of the Director of the National Tax Information would be probably completely different if the athlete has been running a business activity. A great number of previously issued interpretations show that the entrepreneur can deduct from the income the expenses for renting a flat in another place if it is caused by the need to provide services to the contractor as a part of his business operations.

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