Usyk will receive $132 million in fees, but won’t use them: where will the money go?
23 July 19:52
Ukrainian boxer Oleksandr Usyk will receive a record fee for his fight with Daniel Dubois, but a significant portion of this amount will be spent on taxes in Ukraine. This is reported by "Komersant Ukrainian" with reference to the explanation of lawyer Andriy Shevchenko.
The total amount of the Ukrainian boxer’s fee for the fight against the British Fury amounted to $132.28 million. This is the largest fee ever received by a Ukrainian athlete for a sports performance.
However, according to Ukrainian law, Usyk must pay part of this income to the state budget in the form of taxes. We are talking about two main taxes: personal income tax (PIT) and military duty, which are currently in effect in Ukraine.
In particular, Usyk has to pay $23.81 million in personal income tax, which amounts to about UAH 994.6 million. This is a standard tax levied on personal income of 18%. It is paid by all Ukrainian citizens who earn income, including abroad, provided they are tax residents of the country.
In addition to personal income tax, another mandatory payment is the military fee, which currently amounts to 1.5% of income. In the case of Oleksandr Usyk, this amount is $6.6 million, or $275.7 million. In a full-scale war, these funds go directly to the state budget and are used to finance the Armed Forces of Ukraine.
After paying both taxes, the total amount left to Usyk will be approximately $101.87 million. This is still an exceptional amount, but it is important to emphasize that almost $30 million will go to the Ukrainian budget as support for the army and as part of the athlete’s tax responsibility.
As a reminder, Oleksandr Usyk is the first ever absolute world heavyweight champion according to all major versions: WBA, WBO, IBF, IBO and WBC. Usyk’s rematch with the British Daniel Dubois took place on July 19 in London at Wembley Stadium. In the 5th round, the Ukrainian knocked out his opponent and became the absolute world heavyweight champion, the owner of all five belts. Usyk’s fee was agreed upon in the contract signed with the promoters before the fight and was a record not only for him but for Ukrainian sports in general.
What fees did Oleksandr Usyk receive during his sports career?
Oleksandr Usyk is gradually becoming not only the main sports icon of Ukraine, but also a figure that attracts attention in terms of the tax burden on large fees. His income from fights is growing exponentially: from $4.1 million in 2021 for his first fight with Anthony Joshua to $114 million for his rematch with Tyson Fury in 2024. This is one of the largest fees in the history of boxing, and the issue of its taxation is not just a personal matter for Usyk, but a case that is of interest in financial, legal, and government circles.
Read also: Usyk defeated Dubois and became the absolute world champion
Usyk’s income in recent years is as follows:
- $4.1 million – first fight with Joshua (2021)
- $40 million – rematch with Joshua (2022)
- more than $6 million – first fight with Daniel Dubois (2023)
- 45 million – first fight with Fury (2024)
- 114 million – the second fight with Fury (2024)
Tax optimization of this level of income requires serious planning. One possible approach is to receive the fee through a legal entity registered in a jurisdiction with which Ukraine has a double taxation treaty (e.g., the UK, UAE, or Cyprus). Under this arrangement, Usyk does not have to pay taxes in Ukraine if he does not receive direct income within the country.
However, such a scheme requires legal transparency, clearly documented transactions, and proof of income sources. Otherwise, it may be regarded as tax evasion both in Ukraine and abroad.
The example of previous years is illustrative. Usyk once told Dmitry Gordon in an interview that he usually paid taxes in the country where the fight took place. However, after the fight with Joshua in Saudi Arabia (where the tax rate was zero), he paid personal income tax in Ukraine.
For comparison, if Usyk had decided to declare his income in the UK, where his last fight with Fury took place, he would have had to pay 45% tax as a non-resident. This would have amounted to about $59.5 million – almost half the amount of the fee. As a result, he would have received $72.8 million.
At the same time, Ukrainian law provides for the possibility of crediting taxes paid in the UK if these amounts are confirmed by the local tax authorities. However, the mechanism for such a credit is complicated and requires clear coordination between the countries.
Usyk is officially a third-group individual entrepreneur(5% tax), registered in the Kyiv region since 2015. However, there are restrictions on the legal receipt of fees within the framework of the sole proprietorship: the annual income limit for the simplified taxation system is UAH 9.3 million (approximately $250 thousand). Any exceeding of this amount automatically transfers the entrepreneur to the general system with the same rates applicable to ordinary individuals: 18% personal income tax and 1.5% military duty. This results in 19.5% taxation and the loss of the right to use the simplified taxation system for the next two years.
Usyk’s sole proprietorship is registered for the following types of activities:
- 93.12 – activities of sports clubs (main),
- 93.19 – other activities in the field of sports,
- 73.11, 73.12 – advertising activities.
However, according to the Ukrainian tax code, the boxer must account for millions of dollars in fees as income of an individual, not a sole proprietorship, even if he is registered.
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