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The International Boxing Association has unveiled a new tax policy that will impact the prize money earned by boxers participating in international competitions representing their respective countries.
This announcement was made during the closing ceremony of the 2023 Africa Elite Men's and Women's Boxing Championships held in Yaounde, Cameroon, by the global governing body for boxing.
A notable presence at the event, Uganda had a strong contingent of seventeen boxers competing in Cameroon, with eleven achieving money-bracket finishes and seven securing medals.
Umar Kremlev, the President of the International Boxing Association, justified the taxation move, emphasizing the need for a modest return on investment for federations that have supported and developed boxers over the years.
Under the new policy, a 30% tax will be levied, with the proceeds benefiting both the national team coaches and the boxing federation.
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"Coaches are set to receive 10 percent of the prize money, while federations will claim 20 percent," he said.
Additionally, Kremlev outlined a procedural change in the disbursement of prize money. Previously distributed physically, the funds will now be directly transferred to the boxers' bank accounts, with the corresponding taxes routed to the federations.
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At the local level, it's noteworthy that Uganda Revenue Authority (URA) exempts sportsmen's incomes derived from winning or participating in sports competitions from taxation.
Section 21(ab) of the Income Tax Act clearly stipulates this exemption, stating, "An award received by a sportsperson as a reward from winning or participating in a sports competition is exempt from tax."
In a show of appreciation for the accomplishments of the Uganda national team, URA took to Twitter, congratulating the Uganda Bombers, Uganda Boxing Federation, and Moses Muhangi for their remarkable achievement.
The tweet expressed satisfaction that the fighters can enjoy their international winnings without being subject to tax, while also encouraging the younger generation to embrace the sport.
Among the standout performances, Uganda's Wasswa Ssali (lightweight) and Erina Namutebi (welterweight) secured silver medals after competing valiantly in their respective final bouts. However, their cash prizes of Shs36m will be subject to a 30% tax deduction.
Bronze medalists Ukasha Matovu (welterweight), Ronald Okello (lightweight), Solomon Geko (heavyweight), Grace Nankinga, and women’s captain Emily Nakalema are set to receive Shs18m each, with the same 30% tax deduction.
Notably, losing quarterfinalists Muzamir Ssemuddu, James Baraka, Lawrence Kayiwa, and Sharua Ndagire will earn Shs4.5m before taxes.
The Uganda Bombers returned home on Monday, August 7, as they touched down at Entebbe International Airport.
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