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The enthusiasm in South Africa is phenomenal. I am absolutely convinced that, all together, we will deliver the best FIFA World Cup ever because it will be played in Africa.

FIFA President, Sepp Blatter
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Minister in the Presidency of the Republic of South Africa Essop Pahad

News

2010 more than just a game – Govt

21 August - The 2010 Fifa World Cup to be hosted in South Africa should be used as a vehicle to send new images to the world about the people of South Africa and the African continent alike, media delegates in Beijing have heard.

World Cup to boost SA tourism

21 August - South African tourism and leisure sectors are set to benefit from the country’s hosting of the 2010 Fifa World Cup™, Deputy Minister of Finance Jabulani Moleketi said on Thursday.

SA police promise safe World Cup

19 August - South African National Deputy Police Commissioner Andre Pruis says the 2009 Fifa Confederations Cup™ and the 2010 Fifa World Cup™ to be held in South Africa will be safe.

Media to scrutinise 2010 preparations

15 August - A contingent of international and local media representatives has been invited to put preparations for the 2010 Fifa World Cup™ under the microscope in Beijing, the Department of Sport and Recreation said in a statement on Friday.

2010 lessons from Olympic volunteers

15 August - Potential volunteers for the 2009 Fifa Confederations Cup™ and 2010 Fifa World Cup™ to be hosted in South Africa will have to be on top of their game to ensure that crucial areas of operations are well-manned during the events.

SA must unite to make 2010 a success - govt

13 August - With less than 666 days left before the biggest soccer event on the African continent kicks off, government has called on South Africans to come together and share the vision of making it a memorable success.

Fifa: Nothing can go wrong in 2010

12 August - Fifa boss Sepp Blatter has once again reiterated his confidence in South Africa’s hosting of the 2010 Fifa World Cup™ saying the event will change the face of the tournament.

Beijing comes alive with Olympic spirit

12 August - Giant outdoor screens brandishing the Olympic circles, sports memorabilia, Chinese flags, strict traffic flow protocol, heavy police presence, branded commodities, scores of tourists, giant official mascots, late night food markets, and game.

LOC gets ball rolling at Host Cities

06 August - The 2010 Fifa World Cup South Africa™ Organizing Committee has announced the appointment of eight Organising Committee Venue Managers in a move aimed at dispersing its operations to host city level.

2010 boss for Soccerex

05 August - Soccerex have announced that Danny Jordaan, CEO of the 2010 Fifa World Cup South Africa™ Organizing Committee will be participating at the 2008 Soccerex Conference programme.

Volunteer applications hit 20 000

04 August - More than 20 000 South Africans have applied to volunteer during the 2009 Fifa Confederations Cup™ tournament, the Local Organising Committee (LOC) Volunteer Programme said on Friday.

2010 security exercises in Bloemfontein

04 August - South African law enforcement agencies will hold joint security exercises in Bloemfontein in preparation for the 2010 Fifa World Cup™, South African Police Service (SAPS) said in a statement on Sunday.

Revenue Laws Amendment Act 20 of 2006

(full PDF)

Supportive financial environment

The Revenue Laws Amendment Act 20 of 2006 gives effect to the guarantee that FIFA would be assured of a supportive financial environment for the 2010 World Cup.

The Act covers customs and other taxes, and exemptions from certain duties and levies. It also allows certain FIFA officials to import to and export from South Africa the foreign currency linked to the tournament.

The tax bubble

The Act creates a “tax-free bubble” around FIFA-designated sites so that profits on consumable and semi-durable goods sold within these areas will not be subject to income tax; neither will VAT be applied.

This “tax bubble”, a condition for the hosting of the tournament, is something all World Cup host countries must provide. It means that FIFA, FIFA subsidiaries and the participating national associations (excluding SAFA) will – when it comes to VAT on goods and services directly relating to the tournament – be treated as diplomatic missions are treated.

The tax bubble will apply to concession-operated outlets such as those selling food, beverages or merchandise within these designated sites. Certain services will also receive these exemptions – provided these services are necessary for the staging of the tournament; are bought within the designated sites; and are paid for by members of the public, FIFA or LOC officials.

The exemptions apply to South African residents and non-residents, and will apply only in respect of income tax and VAT, which will be zero-rated on goods and services.

However, expenses incurred in the production of this exempt income will not be permitted as deductions for income tax purposes, and a reasonable allocation of expenses attributable to the exempt sales must be made.

Tax-free sites

The FIFA-designated sites will include:

FIFA will also have a flagship store that will be considered a tax-free bubble for six months before the 2009 Confederations Cup until one month after the closing ceremony of the 2010 tournament. However, no tobacco products or cosmetics may be sold, and any alcoholic beverages sold must be consumed on the site.

FIFA shops and outlets outside of the designated sites will be subject to normal tax rules, and FIFA, its subsidiaries or any participating national association will also be liable to SARS for the payment of VAT collected on the sale of off-site hospitality or accommodation.

Exemption dates

The periods for these exemptions begin one week before the kick-off of the Confederations Cup and end immediately after the closing ceremony. The same applies for the 2010 tournament: the exemptions run from one week before the kick-off of the first match – which will be on 11 June – and end immediately after the closing ceremony of 11 July.

Import-tax relief

Separately, under the dedicated legislation, certain persons will qualify for import-tax relief on certain goods where these are re-exported. Included are qualifying persons from:

Others who qualify for import-tax relief are:

For more information on who qualifies, see the explanatory notes on the Revenue Laws Amendment Bill of 2006 (provided by the Treasury) or contact the South African Revenue Service, by:

Ticket sales

Ticket sales will be subject to VAT at the standard rate of 14% and FIFA, its subsidiary or any participating national association will be liable to SARS for the payment of VAT on the sale of tickets.

Abuse

The legislation guards against possible abuse. The Revenue Laws Amendment Act states: “Where any person abuses one or more of the exemptions or concessions contemplated in this agreement by misrepresenting the purpose of an import, overstating sales within a tax-free bubble, understating purchases or expenses in respect of sales in a tax-free bubble or by any other method, SARS may withdraw that person’s entitlement to any of the exemptions and concessions, in consultation with FIFA.”

For more on the underlying guarantee given to FIFA, see a supportive financial environment.

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