The Italian government have decided to scrap the Growth Decree tax relief scheme and it will have a knock-on impact on clubs like AC Milan.
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As SportMediaset and La Gazzetta dello Sport report, the decision has been made to bring the Growth Decree to an end, but it will not just apply from the next transfer window but also to signings made from 1 July 2023 onwards.
Given that Milan made 10 signings during the summer mercato, it means they will be one of the clubs who feels the heaviest impact of the decision to scrap the scheme, which has been changed as follows:
“Employed or self-employed workers who transfer their tax residence to Italy will be granted, from 2024, a new subsidised regime for a maximum of 5 years.
“They will be able to benefit from a 50 percent tax reduction, within a subsidised income limit equal to to 600,000 euros, workers in possession of the high qualification or specialisation requirements who do not appear to have already been resident in our country in the three tax periods prior to obtaining residency.”
There are some who believe that the Growth Decree was harming Italian football because it was encouraging the signing of players from abroad, given that it applied to those coming from another country to live in Italy.
Players who were not residents in Italy in the previous two years before their purchase and who then remained in Italy for at least two years after their signing saw a tax on the gross of the salary at 25% instead of 45%.
Now, clubs will have to change the way they conduct transfer business to cater for the fact they will no longer be able to rely on the Growth Decree.
