Ovation Production Inc. remitted the ultimate withholding tax (FWT) to the Mandaluyong revenue district workplace where it's based mostly.
Madaluyong Revenue District Officer Isabel Paulino told Quezon town Revenue Regional Director Jona DP Amora that Ovation has till June twenty to remit the worth added tax (VAT) from its earnings of the show and therefore the income tax next month.
Based on the P4 million FWT, woman Gaga was paid by the promoter some P20 million.
Under Section twenty five of the Tax Code, a 25-percent FWT is imposed on earnings of foreign entertainer doing shows here.
BIR couldn't create estimate on what proportion VAT and income tax are due from from Ovation.
It said the VAT from woman Gaga's concert are lumped with different earnings from different concerts and connected activities promoted by Ovation.
But it said the principal promoter won't solely shoulder all the business and income taxes however different enterprises like SM that promoted and created the concert attainable.
Revenue officers explained that woman Gaga's FWT is deductible from her income tax liabilities within the u. s. as provided for within the bilateral tax treaty agreement between the 2 countries.
They likened woman Gaga's tax obligations to that of boxing champion Manny Pacquiao who is additionally needed to remit parts of his prize cash to the US Internal Revenue Service (IRS) when fights are staged there that payments are deductible in his income tax here.
