Bureau of Internal Revenue Commissioner Kim Henares said Saturday that no Philippine special tax exemption is needed for boxing icon Manny Pacquiao, because if he only follows proper procedures, he would not have to pay the government anyway.

Senator Aquilino Pimentel III on Friday said he is filing a bill to grant the tax privilege to Pacquiao, who is set to fight undefeated WBA and WBC champion Floyd Mayweather in Las Vegas on May 2.

Experts expect the fight to be worth from $250 million to $400 million.

In an interview over Bacolod’s DYEZ Aksyon Radyo, Saturday, Henares said if Pacquiao follows the right process, he would not have to pay the Philippine government any tax for the fight in Las Vegas.

The United States imposes a 40 percent tax on earnings from the fight, while it is 32 percent in the Philippines, she said.

If Pacquiao pays his tax in the United States, all he has to do is report the matter to the BIR with the required authenticated documents, and he won’t be taxed in the Philippines, she said.

She said if any tax exemption is sought for the Las Vegas fight, it should be made in the United States, where Pacquiao has to pay 40 percent of his earnings, not in the Philippines, she said.

As long as Pacquiao follows the BIR requirements, which he did not do in the past, he will have nothing to pay in the Philippines, she stressed.*CPG

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