They defied the odds on the pitch, but Bafana Bafana’s heroes are finding out that you cannot outrun the taxman. Following their heartbreaking Round of 32 exit against Canada at the FIFA World Cup, the national squad is set for a massive payday—but international tax laws mean their take-home pay is getting heavily chopped.
With FIFA’s R222 million total payout to South Africa, SAFA walks away with 70% (R155.4 million), leaving a R66.6 million pool to be split among the players. While that translates to a cool R1.6 million gross payout per player, the actual cash hitting their bank accounts will look vastly different.
The Double-Tax Reality: How an R1.6m Bonus Becomes R880k
According to financial expert Munya Shumba, host of the Modern Money with Munya TikTok channel, players face a double-whammy from both United States Internal Revenue Service (IRS) and the South African Revenue Service (SARS).
Breaking down the numbers using Bafana captain Ronwen Williams as a prime case study, the deductions look brutal:
- The US Government Slice (30%): Because the tournament earnings are classified as US-sourced income, a mandatory R480,000 federal income tax is deducted right off the top.
- The SARS Slice (15%): Because elite players like Williams already occupy top-tier tax brackets (45%) through their domestic salaries at clubs like Mamelodi Sundowns, SARS claims the remaining balance. Thanks to a double taxation treaty between South Africa and the US, SARS takes a R240,000 cut instead of the full 45%.
The Grand Total: Out of a promised R1.6 million, Williams and his high-earning teammates will only net around R880,000 once the financial dust settles.
More Tax Awaits the Ministerial Bonus
The tax saga won’t stop there. Minister of Sport Gayton McKenzie previously pledged a R5 million team bonus for successfully navigating the group stages and reaching the knockout rounds.
While the R5 million will be divided equally across the 23-man squad roster, those local earnings will once again be subjected to standard SARS income tax deductions based on each player’s individual tax bracket.
