Can someone explain this

Is that the case in the USA or Philippines? Double taxation agreements in the UK work so that you don't have to pay for the difference if you perform abroad (alternatively you can pay the tax rate in the UK) However if you are a sports person and perform in the UK you have no option but you pay tax to the UK government. Wow here comes the complications lol. I know this is the case for the US-Philippines agreement per this article (http://sports.yahoo.com/news/manny-pacquiaos-bank-accounts-frozen-tax-fight-105956574--box.html) which states: "But she said that even if he had paid the 30 percent tax rate in the United States, there would still be extra charges due in the Philippines because it had a higher rate of 32 percent." The above statement was made by the Philippines tax commissioner. But you bring up a good point I am not sure what the agreement between China and the Philippines is. They could have something completely different worked out.

it's complicated. it would be high as hell to start, because he generates so much money, but eventually you'd whittle it down with some good old fashioned american accounting and wealth management. most wealthy people pay a lower tax rate than middle class ones. it's entirely dependent on how much he can write off, what states he was fighting in, etc. it will also factor in the sources of his income. investments are taxed differently from his fights, etc. longer term investments are always taxed lower than the income tax rate. Tell me about it! I work in one state, live in another and own my own business in the state I live. I do my own taxes and all those factors you stated are true. I just don't see how anyone can make a statement on whether this move could save him money just by changing where the fight takes place. People keep trying to make this simple and anyone who is familiar with tax law knows NOTHING about it is simple.

He would still owe the difference in what he paid to China (12%) vs what he would have to pay in the Phil (33%). Double taxations exemption exists between the US and Phil as well. In the most Recent article it points out that even though he paid 30% in the US because the Phillipines is 33% he still owes that 3% difference. I don't see why the Phil would have a different agreement with China. Essentially there is no way to get out of a total tax rate of 33%. wether its 30% to the US and 3% to Phil or 12% to China and 21% to Phil. The difference is deducted not just dropped. And when he fights in Vegas there is no state tax. But yeah I see how it could save him money over fighting in New York though. Is that the case in the USA or Philippines? Double taxation agreements in the UK work so that you don't have to pay for the difference if you perform abroad (alternatively you can pay the tax rate in the UK) However if you are a sports person and perform in the UK you have no option but you pay tax to the UK government.

In really simple terms Pacquiao is not a resident or citizen of the U.S.A so if he fought in Macau he wouldn't owe the U.S, he would owe China taxation (and because of no double taxation he wouldn't owe any substantial amount to the Philippines) The top tax bracket rate in China is 12% so he would pay only 12% on his taxes if he fought in Macau and if he fought anywhere else in the U.S.A apart from Vegas/Texas he would get state tax on top of the initial tax (for example he would pay an extra 8.8% tax in New York) He would still owe the difference in what he paid to China (12%) vs what he would have to pay in the Phil (33%). Double taxations exemption exists between the US and Phil as well. In the most Recent article it points out that even though he paid 30% in the US because the Phillipines is 33% he still owes that 3% difference. I don't see why the Phil would have a different agreement with China. Essentially there is no way to get out of a total tax rate of 33%. wether its 30% to the US and 3% to Phil or 12% to China and 21% to Phil. The difference is deducted not just dropped. And when he fights in Vegas there is no state tax. But yeah I see how it could save him money over fighting in New York though.

It's not that hard to figure out What's his tax rate in the US? Oh really ? .. Enlighten us then ...

In really simple terms Pacquiao is not a resident or citizen of the U.S.A so if he fought in Macau he wouldn't owe the U.S, he would owe China taxation (and because of no double taxation he wouldn't owe any substantial amount to the Philippines) The top tax bracket rate in China is 12% so he would pay only 12% on his taxes if he fought in Macau and if he fought anywhere else in the U.S.A apart from Vegas/Texas he would get state tax on top of the initial tax (for example he would pay an extra 8.8% tax in New York)

It's not that hard to figure out What's his tax rate in the US? it's complicated. it would be high as hell to start, because he generates so much money, but eventually you'd whittle it down with some good old fashioned american accounting and wealth management. most wealthy people pay a lower tax rate than middle class ones. it's entirely dependent on how much he can write off, what states he was fighting in, etc. it will also factor in the sources of his income. investments are taxed differently from his fights, etc. longer term investments are always taxed lower than the income tax rate.

It's not that hard to figure out What's his tax rate in the US? Then I assume there is something missing from the story. The top rate in the US currently is 38% before any deductions or exemptions. Arum claims Top rank has paid 30% of Manny's salary to taxes. These articles imply that this is all Manny would owe otherwise why not withold the whole 38%? I imagine he could easily reduce his effective tax rate to 30% or lower. Philippines income tax rate is 33%. I am not sure what type of deductions and exemptions are available in the philippines.

It's not that hard to figure out What's his tax rate in the US?

Promote boxing in Asia? See that makes total sense to me. Its virtually an uptapped market and when the numbers come back it could prove to be really profitable. I have just heard a lot of people in this forum talk about the tax benefits and have not been able to figure out what those benefits were.

So with the alleged tax issues that Manny is facing can someone explain how fighting in Macau was supposed to save him money? From what I understand in the Phillipines the tax rate is 32%. The Phillipines and the US have an agreement to prevent double taxation so whatever he pays here in the US is deducted from what he would owe to his home country. So what did fighting in Macau do exactly? Even if he didn't have to pay taxes to Macau he would still owe the 32% to the Phillipines correct? Promote boxing in Asia?