14.07.2026

Senegal: FIFA World Cup 2026- the FSF between funding opportunities and major tax risk

The FIFA World Cup 2026 will not be only a sporting challenge for qualified federations. Held across the United States, Canada and Mexico, it will also be a real test of international tax compliance. For the Senegalese Football Federation (FSF), the stakes will go far beyond the pitch: players’ bonuses, staff remuneration, image rights, consultants’ fees, sponsorship income, reimbursements and per diems will all have to be mapped and treated correctly.

The United States is the most sensitive jurisdiction. In the absence of a tax treaty between Senegal and the United States, several payments may be taxable locally, at federal level, state level, or both. Depending on the facts, the FSF, players, staff or service providers may need US tax identification numbers, IRS forms, withholding filings or specific state procedures. Certain payments to non-residents may be subject to a 30% withholding tax unless an exemption or treaty relief applies through the beneficiary’s tax position. The key issue will be the correct qualification of each payment: services, image rights, sports remuneration, allowances or other income.

Canada offers a more predictable framework because Senegal and Canada have a tax treaty. However, the system remains highly procedural. Independent service providers may fall under Regulation 105, while employees may be covered by Regulation 102. Even where treaty relief is available, failure to obtain the appropriate waiver or complete the required filings may trigger immediate withholding and create cash-flow losses that are difficult to recover.

Mexico appears to provide the most favorable regime for FIFA member associations, with broad exemptions for income directly connected with the tournament, including certain payments from FIFA to federations. However, some players’ income may remain taxable, particularly fixed remuneration or cash bonuses linked to matches played in Mexico.

The recommendation is clear: a World Cup is won through talent, but also through preparation. For the FSF, that preparation must include a tax roadmap covering players, coaches, staff and service providers; a mapping of financial flows; identification of withholding and reporting obligations; management of double taxation risks; and contractual allocation of tax costs.

Without such preparation, federations may face loss of income, penalties and reputational damage, particularly in demanding jurisdictions such as the United States and Canada. The FSF should work with a Senegalese tax firm connected to recognized advisers in the host countries.

In international competitions, performance is decided on the field. Tax security is built before kick-off. Anticipating these issues will help the FSF protect World Cup revenues, avoid sanctions and let the team focus on winning match after match.

Author

El Hadji Sidy Diop

Managing Partner & CEO

Legal Adviser and Chartered Tax Expert

Senegal

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