Neymar’s signing for Bara continues adding new judicial chapters. The Contentious-Administrative Chamber of the Supreme Court has rejected Santos’ appeal against the ruling of the National Courtwhich gave the green light to the liquidation of the Treasury to the Brazilian club for the amount of 2.7 million euros, corresponding to the Income Tax of non-residents for the years 2013 and 2015generated as a result of the transfer of federative rights from Neymar to Bara.
The high court indicates that Santos benefited from a capital gain that was subject to the tax regime of our country. The ruling states that the Supreme Court establishes that the economic rights derived from the transmission of the federative rights of a player that a club or sports entity not resident in Spain receives for the transfer of that player to a club or sports entity resident in Spain constitute a capital gain subject to non-resident income tax.
The problem of federative rights
Aun as, The court understands the existence of a transferable right, known as a federative right, which has an economic content that in turn generates a capital gain in the transferor. To do this, the destination club, Bara, will have to have contributed an international transfer certificate when the player was providing services for a club in another State when he registered Neymar in the Royal Spanish Football Federation (RFEF).
This certificate, which endorses this federative right, It reinforces the consideration that rights are being transferred between clubs and that the payment made by the Spanish club of destination responds to the payment of a right exercisable in our country that until then was the property of the foreign club of origin. It is, therefore, conclusive that the purpose of these contracts is not compensation for the early termination of a previous employment relationship, as the appellant maintains, but rather the transfer of rights, federative rights of a player, exercisable in Spain through the registration of the player in a football federation recognized by FIFA for the new club, the ruling states.
The Supreme Court points out that Neymar’s federative rights They belonged to Santos, but he transferred them to Bara in exchange for a price. That money generated a capital gain, which is what the Treasury demands from the Brazilian team. Finally, the ruling indicates that this economic profit should have been taxed in Spain, since these rights were exploited in our country by the Catalan group.
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