ACCOUNTANCY & WITHHOLDING TAX

PDPA ACCOUNTANT Adrian Grainger at Griffiths & Pegg Chartered Accountants is The PDPA's official accountancy partner and has acted in this role since 2012.

 

Through our partnership with the PDPA, Griffiths & Pegg is happy to provide information and guidance on any matters relating to tax and accounting. The options available to PDPA members depend upon the legal status that they trade under. I strongly encourage any PDPA member of any Nationality or employment status to contact me for a free consultation.

As part of our commitment to the PDPA, we are pleased to offer a FREE consultation to any existing client or non-client to discuss their taxation position. All PDPA Members must note that the PDPA are obliged by the HM Revenue & Customs to offer this service to our members.

WITHHOLDING TAX INFORMATION

Tax Withholding on Prize Money: As the organiser and payer of prize money, we may be required in certain countries to deduct withholding tax from prize money paid to non-resident players and remit that tax directly to the relevant local tax authority.

We have engaged independent professional tax advisers to review the tax requirements in each country where events are held. 

Our advisers have confirmed that a withholding tax obligation exists in the below countries, and we are legally required to operate that withholding at the current rates specified.  

Please note that withholding rates are set by the relevant tax authorities and subject to change.  Should these change, we will notify players of the new rate as soon as possible.

COUNTRY – RATE

Germany – 15.825%
Belgium – 18%
UK – 20%
USA – 30%
Australia – 30% to 47%**
Austria – 20%
Slovakia - 19%
Switzerland – 20% 

*For amounts exceeding any applicable thresholds or exemptions available under the relevant double taxation treaty.

** Withholding rates vary depending on payment structure and income tax thresholds.  Our advisors are preparing an FAQ document with more detail which will be provided to players in due course.

Any required withholding tax will be deducted from the gross prize money at the applicable rate before payment is made to the player.

Where tax has been withheld, players will be provided with details of the amount deducted and the relevant tax authority to which it has been paid.

In many cases, international double taxation agreements are intended to prevent the same income from being taxed twice. Depending on a player’s country of residence and personal tax circumstances, tax withheld in the country where the event takes place may be available as a foreign tax credit, deduction, relief or exemption against tax due in their home jurisdiction.

As individual tax circumstances vary, we are unable to provide personal tax advice. Players should consult their own accountant or tax adviser regarding the treatment of any withholding tax deducted and any relief that may be available to them.

NOT A TOUR CARD HOLDER 

If you are a player on the Challenge Tour, Development Tour or Women's Series or even an Affiliate Tour player and you are not registered with HMRC and have had a withholding tax deduction, you need to contact Adrian ASAP.