ESKL to focus on tax awareness campaign for e-sports athletes

PUTRAJAYA: The ESports Kuala Lumpur Association (ESKL) is planning to organise an awareness campaign in 2021 for e-sports athletes to fulfil their duty as responsible citizens by paying taxes.

ESKL president Hisham Darus said the campaign aims to encourage e-sports industry players to pay taxes from their prize money won in championships to avoid being fined or worse, restricted from travelling abroad.

He said most e-sports athletes prefer to concentrate on participating in championships, achievements, and technical expertise and individual performance than paying taxes and the importance of taxes in the development of e-sports in the country.

“So beginning 2021, ESKL will organise championships and activities together with taxpaying awareness campaigns among e-sports enthusiasts to inform them that the prize money they win does not solely belong to them.

“A part of the winnings needs to be handed over to the country for its development, especially to support e-sports development,” he said in a media conference yesterday.

Hisham said most e-sports athletes know how important it is for Malaysians to pay taxes, but the awareness is still at a low level. He estimated that the government could rake in RM100 million in taxes if esports athletes pay their taxes.

Meanwhile, he said that several e-sports athletes had approached ESKL and shared their tax problems, especially when they were approached by the Inland Revenue Board (IRB) to settle their tax payments recently.

“ESKL received many complaints from e-sports athletes that the IRB demanded that they settle their tax payments, and some issues have led to court cases, and in worse cases, some have been declared bankrupt,” he added.

Therefore, he said that the association will hold a meeting with IRB and the Finance Ministry soon to discuss a collaboration to hold the awareness campaign.

In addition, Hisham said there was a need for the Youth and Sports Ministry (KBS0 to review sports development policies, especially Section 2 Article 1 of the Sports Development Act 1997 regarding tax exemptions for the country’s professional athletes.

“I understand that currently there are 29 sports registered for tax exemptions for athletes. I hope e-sports will be considered to be listed in Article 1,” he said. - Bernama