January 2 – The French Constitutional Council has ruled against giving a tax free status to FIFA for running their operations in Paris which has raised questions over the continuation of FIFA’s office in the French capital.
French President Emmanuel Macron was in favour of keeping the tax concession in order to keep his aspiration to entice a portion of the organisation back to Paris, the world governing body’s birthplace.
The news breaks after it was first revealed by French Newspaper Le Monde that FIFA operations in Paris would not be subject to corporate taxes and social security contributions in February 2022, as the activities of the world federation in the French capital were considered “non-commercial and non-profit-making”. The new ruling means that FIFA employees will have to pay social security contributions in France, making FIFA’s operations in Paris considerably more expensive.
Currently in Switzerland, FIFA is privileged with a 12% tax rate on profits, similar to other sports organisations based in Switzerland. Nevertheless, employees are obliged to pay the country’s standard income taxes.
In 2018, Macron and FIFA boss Gianni Infantino negotiated a return of parts of the operation of the world federation to its roots. FIFA was founded in 1904 in the French capital before moving the headquarters to Zurich in 1932.
In June 2021, Macron and Infantino officially opened the Hotel de la Marine (pictured) as FIFA’s Parisian base of operations, which was renovated over four years in part thanks to €130 million funding from Qatar, the host country for the 2022 World Cup.
FIFA’s expansion to the French capital formed part of Infantino’s vision for a global FIFA, using the Parisian hub to strengthen ties with African member associations in particualr.
The original incentives offered by the French government accelerated FIFA’s decentralisation, with Infantino, who has been under criminal investigation in Switzerland, feeling unwelcome at home. He currently lives in Doha, Qatar, though FIFA has previously emphasised that he pays his personal taxes in Switzerland.
With the World Cup in 2034 to be held in Saudi Arabia, it seems increasingly likely that more of the organisation organisation could follow its president to the Middle East.
Contact the writer of this story, Harry Ewing, at moc.l1734357232labto1734357232ofdlr1734357232owedi1734357232sni@g1734357232niwe.1734357232yrrah1734357232