MFA President Norman Darmanin Demajo urged clubs to regularise their position with regards to salaries following the announcement by the Minister for Finance Edward Scicluna of a new 7.5% income tax rate for part-time footballers during the Budget 2014.
Darmanin Demajo said that the association had discussed several issues with the government including the lease agreements for premises, different forms of ownership, accountability and transparency. He said the government agreed in principle with the fact that clubs could use their premises for commercial activity. On the other hand, the setting-up of limited liability companies could provide more exit strategies for the good of the clubs.
The MFA President said that this new final settlement tax-rate was a step in the right direction, saying this was “a very fair rate.”
“The ball is now in your court. Everyone knows clubs pay wages to their players and now you have to regularise your position.”
“The government has invested a lot in football and the least you could do is give something back.”
Darmanin Demajo urged clubs to apply for a PE number, reminding clubs that to be in full compliance with the financial fair play regulations, they had to pay all income tax and social security contributions. He also hinted that in future, clubs who seek the assistance of the association will be asked to produce their PE number.