According to Brazilian media estadao, the Club World Cup prize money is not as much as it seems, and FIFA has not completed communication with the United States on taxation issues.

The World Cup host country is tax-free for bonuses, but the Club World Cup does not. In order to avoid the tax impact of the United States, FIFA paid some clubs to participate before the start of the Club World Cup. Due to the unclear taxation rules, each case needs special treatment, and there is currently no unified tax rate standard.

The US tax system involves federal and state taxation. Brazilian clubs have considered registering companies overseas (later abandoning the plan). Another option is to adopt the "actual related income" (ECI) taxation model.

Tax lawyers Marília Cavagni and Bruno Faccin pointed out that the tax rate under this model is usually 30% of the gains. "Other payments such as logistics support fees paid by FIFA, or income incurred in activities outside the United States (such as portrait rights use) should not be taxed by the United States." She stressed that clubs must improve financial and accounting management and accurately declare these expenses to avoid miscalculation by the IRS.

The subsequent Brazilian clubs will also need to pay a 15% Brazilian corporate income tax. The lawyer explained: "Because Brazil and the United States have not signed a double tax avoidance agreement. However, there is a workaround. Although these incomes must be declared, as long as the tax payment certificate is provided, the club can deduct Brazilian taxes from taxes."

Bank Club awards↓

Palmeras and Fruminense (advanced to the top 8)

Bonus: 39.84 million US dollars Deducted 30%: 27.88 million US dollars

Bonus: 27.71 million US dollars deducted 30%: 19.39 million US dollars

Botafogo (top 16)

Bontafogo (top 16)

Bontafogo (top 16)

Bontafogo: 26.71 million US dollars deducted 30%: 18.69 million US dollars