Games And Sports Bodies Relief from IT & CT

Revised Arrangements for Applying for Relief from Income Tax and Corporation Tax for Certain Games and Sports Bodies

Section 235 Taxes Consolidation Act 1997, provides for an exemption for Games/Sports bodies in respect of Income Tax, Corporation Tax and Dividend Withholding Tax, where the income of such a body, as is shown to the satisfaction of the Revenue Commissioners, has been or will be applied for the sole purpose of promoting an athletic or amateur game or sport. In addition, relief from Capital Gains Tax is available provided the proceeds of the gain are reinvested in acquiring new assets for the promotion of the game/sport in question.

It is necessary to apply to Revenue to secure exemption and those bodies eligible to apply are any clubs or organisations established for and in existence for the sole purpose of promoting an athletic or amateur game or sport. A body must also be:

• member controlled and owned and not for profit
• legally established in the State and have its centre of management and control therein. In addition, the majority of its trustees/directors/officers, as appropriate, must be resident within the State.

Without an exemption, a games or sports body, in common with any other organisation:

• may be liable to Income / Corporation Tax on any surplus income, and
• may be obliged to make annual tax returns to the local Inspector of Taxes.

Revenue have recently carried out a review of the taxation position of games and sports bodies who do not currently hold a formal exemption under Section 235 TCA 1997 and following which new arrangements have been introduced towards enabling clubs etc. to regularise their own particular position having regard to this exemption facility. These arrangements are set out in a new information leaflet (GS1) and which also incorporates a simple declaration procedure for clubs applying for exemption. This leaflet is available from the Games/Sports Exemption Section in Nenagh, from any tax office, or from our website at www.revenue.ie. - see “Publications”.

Meetings have been held with the National Governing Bodies (N.G.B.’s) of the various sporting codes to inform them of the new arrangements and Revenue will be distributing the new leaflet to all games/sports clubs throughout the country with the assistance of the N.G.B.’s. A list of these N.G.B.’s is set out below. Queries on the new arrangements may be addressed to:

Games/Sports Exemption Section
Government Buildings,
Nenagh,
Co. Tipperary.

National Games and Sports Governing Bodies in Ireland