The Bureau of Internal Revenue (BIR) yesterday assured boxing icon Manny Pacquiao that there will be no double taxation on his multi-billion peso earnings from his recent fight with Floyd Mayweather Jr. in Las Vegas.
“The BIR wishes not to disturb the peace of mind of the boxing great after his sorry loss to undefeated American boxing champion Floyd Mayweather,” said a top revenue official who declined to be named.
The BIR official explained that there is double taxation if Pacquiao’s fight earnings will be taxed twice by the same taxing authority for the same purpose and for the same period.
But Pacquaio’s earnings from Sunday’s bout must be reported to the BIR for tax compliance. Even subjecting Pacquiao’s earnings to audit does not mean double taxation.
All Pacquiao has to do, the official said is to present documents from the Internal Revenue Service (IRS) of the United States showing the taxes he paid there.
However, there will still be no double taxation if the BIR imposes taxes on all his earnings if he fails to present documents from the IRS indicating that he has paid his taxes there as provided for under
After computing the tax due from his taxable income from within and outside the Philippines, the tax he paid in the US will be credited against his tax due in the Philippines.
A Metro Manila revenue regional director said the BIR may get minimal or no income tax at all from the Pacquiao-Mayweather fight because of the maximum income tax bracket of 39 percent in the US compared to 30 percent income tax schedule here.
The same official said Pacquiao is also entitled to claim tax deductions for transportation and accommodation expenses as well as payments to coaches, trainers and other aides.
Sports analysts estimated Pacquiao’s earnings from the Las Vegas fight at around $100 million or about P4 billion.
Manila Bulletin
