Senate Finance Chairman Wyden releases legislation repealing tax exemptions for certain large sports leagues, sovereign wealth funds

Legislation would revoke sports league’s tax exemption and deem certain sovereign wealth funds ineligible for a tax break

Legislation would revoke sports league’s tax exemption and deem certain sovereign wealth f

U.S. Senate Finance Committee Chairman Ron Wyden (D-OR) today introduced legislation that would revoke the tax exemption for certain large sports leagues and deem certain sovereign wealth funds as ineligible for favorable withholding rules applicable to sovereign wealth funds. 

Read the Senate Finance release (July 26, 2023)

Large sports leagues

The organizers of certain large sports leagues, such as the PGA, currently qualify for tax-exempt status as organizations described in section 501(c)(6), which provides tax exemption for “business leagues, chambers of commerce, real estate boards, boards of trade, and professional football leagues.”

The first bill introduced by Senator Wyden would modify the 501(c)(6) designation in the Code to exclude sports organizations with assets exceeding $500 million. 

Read a one-page summary [PDF 77 KB] of The Sports League Tax-Exempt Status Limitation Act

Sovereign wealth funds

Current law exempts sovereign wealth funds and similar foreign government investment funds from a 30% withholding tax on payments such as dividends and interest.

The second bill introduced by Senator Wyden—The Ending Tax Breaks for Massive Sovereign Wealth Funds Act —would deny that benefit to funds belonging to countries that have more than $100 billion invested globally, with an exception for countries that have a free trade agreement or a tax treaty with the United States and are not deemed by the State Department a “foreign country of concern.” 

Read a one-page summary [PDF 88 KB] of the bill



The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.