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World number nine Holger Rune has quickly shut down a tweet which claimed Carlos Alcaraz had to pay €1,181,936 in income tax after his French Open win at Roland Garros.
One of the most controversial aspects within tennis is that players have to pay tax on their winnings in accordance with the country where the competition took place. This means, for example, that Alcaraz would have to pay taxes in line with what the French government charges, rather than in his home tax region of Spain.
Rune, who suffered a disappointing loss to Lorenzo Musetti in the fourth round at Roland Garros, was offering financial insight on ‘X’, formerly known as Twitter. The account named TENNISMEDIA had claimed that Alcaraz would have to pay a huge amount in taxes if he were to pay the tax rates for where he is based in Spain.
The full back and forth would read:
“Carlos Alcaraz got a check for €2.55 million alongside the trophy for winning the men’s singles trophy. But he will have to pay close to €1,181,936, a 46% of the total amount as IRPF which is Spain’s Personal Income Tax".
Holger Rune would quickly jump to reply by saying, “You pay tax of your prize money in the country where you play. I am sure it’s more than 46% in France But you can deduct your expenses".
This helpful response from Rune was met with a further reply from TENNISMEDIA saying, “Hi Holger, thanks for clarifying it. I was not sure the athlete was taxed on their country of residency or the country where they got the prize money. The source, El Economista’s article, didn’t really talk about that. Also I wonder if a player ends up paying some more taxes on their own country on the rest of the money as well. And true, expenses can be deducted but I am sure it is peanuts compared to the prize money received. Well if you go further in a tournament… I almost feel bad for the guys out there playing more than five hours on that finals and having to give up almost 50% of their prize money".
The Danish tennis star would then make a cheeky comment on the benefits of living in Monaco, even if taxes on prize money can’t be avoided there: “For the weather, the tennis facilities, and the privacy, absolutely yes".
Could we see a change in how prize money is taxed in the next few years? I could definitely see the players requesting some form of adjustment further down the line.
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