Published 21:32 IST, October 5th 2020
Dream11 IPL 2020 franchise earnings, players' salaries to be cut by UAE's 2018 VAT policy?
As per the report, VAT will be levied on the IPL player salaries as they are providing services to the franchises during the ongoing Dream11 IPL 2020.
The ongoing Dream11 Indian Premier League (Dream11 IPL 2020) has kept fans on the edge of their seat with the results of some of the matches being decided in the Super Over. The onfield action has only got more intense as teams battle through player injuries and trying to find the right combinations to win matches. The tournament is currently being played in UAE amidst the COVID-19 pandemic, with players and team staff having very much settled themselves in the bio-bubble.
The Dream11 IPL 2020 has managed to break numbers in terms of viewership but the Sourav Ganguly-led Board of Control for Cricket in India (BCCI) and the franchises have suffered slightly in terms of finances. Currently, the Dream11 IPL 2020 is being played behind closed doors due to which the inflow of gate money has stopped and the problems has only increased after a report recently emerged that the Dream11 IPL 2020 stakeholders are likely to get hit by the new taxation laws in the United Arab Emirates.
Dream11 IPL 2020: UAE taxation law to affect players salaries
Back in 2014, when 20 matches of the tournament were played in the country, there was no such tax law which existed. However, according to Insidesport, the new Value Added Tax Laws introduced in 2018 mean that all player earnings in UAE are bound to be taxed since any service provided in the nation even by a foreigner, is liable to be taxed.
A representative working with Dubai's Shuraa Tax Consultants told the website that the VAT will be levied on the IPL player salaries as they are providing services to the franchises. As per the VAT laws, the place of supply of any sporting service or any similar services shall be where such services are performed.
Punjab team CFO LC Gupta, who spoke to the website, said that the franchise is clueless about any such taxation and no one has informed them about it. He added that as of now, there will be no deduction in players’ salary. The publication also tried to reach the BCCI over the matter but they are yet to comment on the matter.
Dream11 IPL 2020: Kohli Dream11 IPL salary
One of the players who is set to be affected the most from the laws is Bangalore captain Virat Kohli. The Kohli Dream11 IPL salary stands at $2.4 million (₹17 crore). He is the most expensive in the ongoing Dream11 IPL 2020 season. Kohli was otherwise set to earn another $3.2 million (₹24 crore) this year, but the COVID-19 pandemic and laws in the UAE might reduce his 2020 salary. Apart from the Dream11 IPL salary, Kohli also rakes in the big bucks through endorsing brands like Audi, Flipkart, Google, Hero MotoCorp, Puma, Uber and Valvoline.
Dream11 IPL schedule
Image Source: Indian Premier League / Instagram
Disclaimer: The above Virat Kohli IPL salary information is sourced from various websites and media reports. This website does not guarantee 100% accuracy of the Virat Kohli IPL salary figure.
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Updated 21:33 IST, October 5th 2020