AS Monaco's tax benefits don't seem to do anything in FM13

[FootballIsKing]

I am playing as Monaco, and whenever I try to make a transfer, players seem to be asking for wages they would have received before tax, at high paying tax countries. I was trying to buy a RB (Corchia), who asked for 50k in wages, which is like 47k after tax. 47k after tax is extremely freaking high for any player.... QPR's Samba makes that much (100k before tax). Any idea if it's just a glitch or what?

 

[FootballManagerG0D]

I am playing as Monaco, and whenever I try to make a transfer, players seem to be asking for wages they would have received before tax, at high paying tax countries. I was trying to buy a RB (Corchia), who asked for 50k in wages, which is like 47k after tax. 47k after tax is extremely freaking high for any player.... QPR's Samba makes that much (100k before tax). Any idea if it's just a glitch or what?

My question is what does it matter, Corchia would ask for 50k per week if you were an English team. It's not like the tax goes back into your club. you pay 50k no matter what.

 

[gogogo golem]

Remember you have a sugar daddy so people will want more off you. Also, Corchia is French and SI have coded in the Monaco-France tax treaty that means French nationals in Monaco pay French tax. Which will be annoying considering national insurance employer in Monaco is over 30% meaning you're paying over the top for French nationals.

 

[RobinPazzini]

because monaco is the paradise of tax

 

[Death Ball]

My question is what does it matter, Corchia would ask for 50k per week if you were an English team. It's not like the tax goes back into your club. you pay 50k no matter what.

It does, because what the player would really want is X clean, after tax. That's one of the reasons Spanish clubs could sign Beckham and all those superstars of football, because special taxes for foreigners during their first five? years in Spain. That's been abolished and with higher taxes it will again be hard for Spanish clubs to get that kind of superstars.

There would be the situation today:

Let's imagine Rooney wants to leave ManU and there's interest from Real Madrid and PSG, where Spain has taxes over his wages of 30% and in France it's of 10%. (I don't know the actual tax rates of each country, just making them up for the example)

Do you think it will be the same for Rooney to accept a €100K p/w pretax from Real Madrid than PSG?.

I don't think he'll consider getting net €70K p/w is the same than getting net €90K p/w.

If PSG offered €100K p/w, then Real Madrid would neet to offer at least €135K p/w to match the net wages after tax, which is what the player actually gets, the rest is for the local IRS.

So it follows that a player who is after €90K p/w net wages, would ask for €100K p/w to PSG and €135K p/w to Real Madrid.

 

[gogogo golem]

Death Ball, Corchia would pay French tax, so that doesn't matter.

 

[FootballIsKing]

My question is what does it matter, Corchia would ask for 50k per week if you were an English team. It's not like the tax goes back into your club. you pay 50k no matter what.

because I thought this would allow me to offer lower wages, since I thought after tax wages are what matters to the club. Therefore, if Corchia wanted 30k after tax, I'd only have to pay, say, 35k instead of 50k like I would if I was at an english club

 

[FootballIsKing]

Remember you have a sugar daddy so people will want more off you. Also, Corchia is French and SI have coded in the Monaco-France tax treaty that means French nationals in Monaco pay French tax. Which will be annoying considering national insurance employer in Monaco is over 30% meaning you're paying over the top for French nationals.

**** this sucks, sugar daddy barely gives me money for a top club anyways... (won Ligue 1 and Euro Cup at first opportunity, taking on ECC now.)

 

[FootballManagerG0D]

because I thought this would allow me to offer lower wages, since I thought after tax wages are what matters to the club. Therefore, if Corchia wanted 30k after tax, I'd only have to pay, say, 35k instead of 50k like I would if I was at an english club

No, I think Corchia is going to want around 50k no matter what team he goes to.