Many of you are fooled both Floyd and Manny pay 40% to taxes! That 32 Floyd gets he only see's half...same with the 25 Manny gets per fight!
No interest in wanting to count another mans pockets but on the Tax situation. He is likely on a non-immigrant visa, with this you do not need to pay any taxation unless you have spent over 183 days a year in the country. (we are also assuming the money goes to him personally and not some offshore promotions company) He will however be required to pay tax in the Philippines (again if he hasn't set up an offshore SPC) and at this rate it will be around 35%
Pac will be a citizen of the USA by now surely? I pay tax to Norway and UK when I work there. No way will the U.S. Taxman allow someone to earn 100s of millions in their country and not pay a penny.
From what I understand, it's not just free money. Alll the ads you see on cable tv, etc that comes out of his pocket. Paying for the venue, out of his pocket. essentially millions of dollars go out the door before the fight takes place, and it's possible if one of the fighters get hurt while training for example, this money might never be recouped. That risk is also part of the equation.
The US requires that someone earning income pay a 30% withholding tax, and it's the responsibility of Arum to ensure this happens, otherwise he'd be on the hook for any short fall which may arise from not adhering to this rule. When he files his taxes, he will pay tax in the US for these earnings, and he'll also have to report these earning on his tax return in the Philippines . He would then get a foreign tax credit to recognize the tax paid in the US, so as to ensure he's not double taxed on this income.
Quite possibly, even then i believe he has some relief because of the time outside of the country. Companies do it all the time Danny, your from the UK i assume - look at what guys like Starbucks, Amazon, Apple, Ebay make from your country and filter it out through various loopholes - hundreds of millions go untaxed daily all over the world. Whilst its still likely there will be some provision/tax - its fair to assume the lions share is going to the phillipines. the other point someone mentioned was that manny had trouble with the IRS - From my understanding he had an Audit but it was the Philippines that suspended his accounts and all that jazz - could be wrong
:good I was close but this is much clearer - and wouldn't be surprised if there was a rebate or two and or he had an LLC
He'll pay the taxes in the US and and it will be marked as a credit to his taxes in the Philippines, so as to avoid double taxation. He doesn't get a rebate of the difference between the rates because the rate is higher in the US. The personal income tax rate in the US is $120k + 39.6% on all sums over the amount of $413k
Basically none of the TV advertisement is paid for by the promotional companies. It's a PPV event - that's paid for by the broadcaster.