After the national team failed at the 24^th SEA Games last December, VFF said goodbye to Riedl peacefully. The coach accepted retirement and received an allowance of $36,000. But the federation is facing a huge debt left by Riedl: his personal income tax for 30 months totalling VND1.8 billion (US$112,500).

 

Under the contract between VFF and Riedl, the coach’s monthly pay was $12,000, not including accommodation, travel, etc. expenditures. At this level of income, the personal income tax is around VND60 million (over $3,750) per month or $112,500 for 30 months.

 

However, VFF promised to pay personal income tax for Riedl and now the federation and even the Ministry of Culture, Sports and Tourism is asking the government to exempt tax payment for Riedl and also the new coach of the national squad, Henrique Calisto.

 

Previously, VFF also agreed to pay personal income tax for other foreign coaches like Tavares and Dido and it was exempted from paying the taxes. Similarly, the former Committee for Sports and Physical Training (merged into the Ministry of Culture, Sports and Tourism) was exempted from paying personal income tax for foreign coaches of other sports.

 

As tax experts say VFF has to pay the tax because it is a social organisation that has sources of income, VFF Chairman Nguyen Trong Hy emphasised that it would be good if the Finance Ministry agreed to cut the tax for Riedl, otherwise the VFF would pay immediately.

 

“We know the rules on personal income tax but we want to have a special mechanism for the chief coach of the national football squad so VFF sent a dispatch to ask for the government’s assistance,” said an anonymous VFF official.

 

The case of Riedl is being considered by the government but with the Calisto era, VFF will have to obey the law on personal income tax and it is the same for other sports agencies.

 

Some say that VFF didn’t learn anything from a scandal several years ago, which also originated from a VFF contract with a foreign coach. Fired French coach C. Letard sued the VFF at the International Sports Court and the federation had to pay nearly VND3 billion ($187,500) to compensate him.

 

However, Hy said VFF is an occupational social organisation so it proposed a tax exemption for Riedl as a foreign expert. The federation has sources to pay the tax debt because this item was in its plan already when VFF signed the contract with Riedl.

 

According to Hy, nobody made a mistake in this case because the two sides agreed on that clause when they negotiated the contract. “It is not the fault of Riedl because if he had had to pay tax, he would have asked for a higher salary. If the Finance Ministry agrees to exempt the tax, VFF will have more funds to invest in football training or drilling. If not, VFF will pay the tax and the payment won’t affect this year’s plan,” Hy added.

 

It is said that Riedl also owes more than VND10 million ($600) in telephone bills and VFF has to pay them because Riedl’s phone numbers were registered in its name.