Foreign players' taxation in Israel: What's stopping Scottie Wilbekin? / News - Basketnews.com
US players are entitled to several tax benefits. The most important of them goes away after the first four years of playing in Israel.
Credit: BasketNews.lt/D. Lukšta Credit BasketNews.lt/D. LukštaScottie Wilbekin admitted to BasketNews' Martyna Motum yesterday that the main technicality stopping the player from coming back to play for Maccabi Playtika Tel Aviv again is the tax situation in Israel.
3-pointers this season
34%8,5Points made:8,5Accuracy:34,3%Place in standings:11Record max:12Record min:6Most made 3FGs:Wade BaldwinTeamEuroLeagueStatisticsScheduleWhat are the circumstances that prevent the star guard from returning to the country he loves? Let's take a look.
Foreign players are entitled to a particular tax exemption. For the first four years of competing in Israel, their tax rate is cut in half - from the regular 50% to 25%. It applies to all athletes not born in Israel.
Additionally, all players are allowed to deduct living expenses from their taxable income each month. Athletes can write off rental expenses, accommodation fees, and even the amount spent on meals.
Since Scottie is a US citizen, he was also entitled to another tax deduction.
The US and Israel have signed a treaty that is intended to prevent double taxation. It provides US athletes with $400 of tax-free income per day. Throughout the season, it accumulates to over $100,000.
If we combine everything, the already-reduced tax rate for US players comes down to 15% or even 10%. When the four-year period ends, the base tax rate jumps to 50% just like for any other Israeli citizen.
With Scottie Wilbekin having already spent four seasons with Maccabi, his return would mark a significant increase in the money he would have to give away from his income.
Sports teams in Israel usually pay the net income to players, absorbing all the taxes. In turn, they are incentivized to keep the athletes for only up to four years.
We rarely see foreign players stay for a long time in Israel. It seems that the situation is not going to change, at least not in the upcoming years.
Full episode of "Hanging Out w/ Martyna Motum" with Scottie Wilbekin:
Like what we are doing? Support us by becoming BN+ member.Link to this article:https://www.brazilv.com/post/11904.html