Sports competitions cannot be held without referees. Often volunteers, sometimes paid, how are the earnings of men in black taxed?
From the lowest amateur level to the highest professional level, there are tens of thousands in France exercising this function, in all disciplines and all levels. Without them, no sport. A commitment that deserves a little recognition: since a 2006 law, sports referees and judges are considered to be responsible for a public service mission. Enough to ensure them recognition, as well as better protection in the exercise of their functions.
And fiscally, how did it work?
We must start by asking the essential question: is the referee paid to officiate? If the functions are carried out on a voluntary basis, no gain, therefore no tax. A situation that will concern most referees. Those assigned to lower divisions and/or officiating in sports federations with low resources. For those who are paid, we can distinguish several cases.
Some referees may be linked to their federation by an employment contract. These are essentially high-level referees in the most prominent disciplines. Their income is taxed in the salaries and wages category, like any employee. However, this case remains very rare.
Most often, the referee goes to the matches for which he is appointed by his federation, does his job and then receives afterward a sum which also covers his costs. He officiates under his license, issued by his federation, without being bound to it by a contract. His income is then considered as non-commercial profits (BNC) and taxed in this category.
Below 70,000 euros in revenue, the micro speed applies. The arbitrator declares his income (all sums collected for whatever reason) in box 5KU (1) of his income declaration and the tax authorities apply a reduction of 34% representing the charges. Over 70,000 euros in revenue, you must file a detailed declaration with the business tax service. A case that remains very rare!
Exemptions for small referees?
Remember: referees are considered to be responsible for a public service mission. This is enough to justify a tax and social exemption! Referees’ income is exempt up to 14.5% of the annual social security ceiling, i.e. currently 6,378.84 euros..
Below this amount, the arbitrator is neither taxed nor subject to social contributions. In practice, this will represent the vast majority of active referees in France. Only those working at a high level are affected by the taxation of their earnings.
A tax boost in the form of recognition, which is also an aid to recruitment for this corporation in need of vocations, yet sports practice is essential. The Minister of Sports estimated in 2011 that when compared to the average annual cost per referee and in view of the services provided, these tax and social exemptions do not prove excessive. Indeed, compared to the 90,000 referees affected by the system, tax and social security exemptions only represent an annual cost of 522 euros per referee. It would be particularly damaging if the provisions of the law of October 23, 2006, aimed at strengthening the attractiveness of the functions of sports referees and judges, were called into question. All sports federations are currently experiencing difficulties in recruiting and retaining candidates, even though these essential missions ensure the regularity of competitions and respect for sporting ethics.
However, the Court of Auditors, in a 2011 report, called for the end of this system which it considered too costly, despite figures considered uncertain. It was then valued between 37.5 and 134 million euros per year. According to the latest finance bill, the budgetary impact would be 7 million euros for 2023.
(1) Non-professional activity, otherwise 5HQ (for declarant 1)