Official World Club Note
The US will tax Brazilian clubs' revenues for the 2025 FIFA Club World Cup.
By Communication - inFIFA has informed Brazilian clubs competing in the Club World Cup, between June and July 2025, in the United States that, unlike what happened in the World Cup, the American government will not grant tax exemptions to revenues generated during the tournament.
Under current US tax law, payments made by FIFA to clubs representing countries that do not have a double taxation agreement with the US — such as Brazil — are subject to a 30% withholding tax on federal taxes, in addition to possible state and local taxes and administrative fees.
To reduce the impact of these taxes and ensure that the amounts owed to Brazilian clubs are received more efficiently and transparently, following international best governance practices, specialized consultancies recommended the establishment of a company in the United States, with the exclusive purpose of managing revenues and expenses linked to the World Cup.
The constitution of this company is temporary and restricted to participation in the tournament, without any impact on the sporting, legal or operational structure of the clubs in Brazil, serving only the specific purpose of reducing the tax withholding on revenues from the 2025 Club World Cup from 30% to something around 21%, still deducting expenses related to the World Cup..