EPTOfficial 'what is Dota anymore' discussion - Page 1667
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PassiveAce
United States18076 Posts
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andyrau
13015 Posts
in china, dividends, royalties, and other miscellaneous income is taxed at a flat 20% rate for us taxes on foreign income, you can either choose to take either an itemized deduction or a tax credit. the itemized deduction reduces overall taxable income and a credit reduces the amount of taxes you pay. either way getting taxed twice isn't a big deal as the irs seems pretty soft on that. so i don't really get the eg situation unless there's difficulty in transferring money out of the country as I know there's a restriction of something like 50k outbound wiring but idk if that applies to foreigners. | ||
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crms
United States11933 Posts
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tehh4ck3r
Magrathea7084 Posts
On May 09 2015 02:20 andyrau wrote: ok well i looked up some rudimentary regulations for chinese taxes in china, dividends, royalties, and other miscellaneous income is taxed at a flat 20% rate for us taxes on foreign income, you can either choose to take either an itemized deduction or a tax credit. the itemized deduction reduces overall taxable income and a credit reduces the amount of taxes you pay. either way getting taxed twice isn't a big deal as the irs seems pretty soft on that. so i don't really get the eg situation unless there's difficulty in transferring money out of the country as I know there's a restriction of something like 50k outbound wiring but idk if that applies to foreigners. GGA is going to take a cut of the winnings too which probably makes it more complicated. And PW might be paying GGA directly instead of the players directly | ||
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SKC
Brazil18828 Posts
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Plansix
United States60190 Posts
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andyrau
13015 Posts
after players are paid does the organization take their cut; this way we avoid triple taxation of the overall prize pool. assuming gga is nice to players, then chinese taxes: 1.3m * .8 = 1.04m if im remembering right gga has always taken 20% of prize money so 1.04m * .8 = .832m .832m / 5 = .1664m per person 1099 misc income is taxed at 15% and an additional 9% past a certain threshold (150k or some shit), something which I'm sure eg players will surpass this year so that's 24% 166.4k * .76 = ~126.5k is their total winnings from DAC, but I'm sure it's closer to 130-140k after proper deductions. worst case, if gga treats their players like employees and pays out DAC earnings as a bonus on their w2 then each respective player would get even less. somewhere around 100k if I had to guess. taxes are fun ok + Show Spoiler + actually i was just really really curious how much they'd make oh actually i just realized they might have to divide by 6 cause of fucking charlie rip | ||
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Kupon3ss
時の回廊10066 Posts
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Slomo
Germany7198 Posts
Holy fuck so good User was warned for this post | ||
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Comeh
United States18919 Posts
On May 09 2015 02:58 Kupon3ss wrote: The problem is not just this batch of money - since EG plans on top3 TI with a projected at least another 200K per person it behooves them to find a way to get money to players without having to deal with the 300k+ tax bracket I'm not too learned, but how would that even be possible? How could you possibly not declare this as income? more importantly, why shouldn't they pay these taxes? | ||
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SKC
Brazil18828 Posts
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Plansix
United States60190 Posts
Comeh: Its when you start paying a lot more state and federal taxes if you salary is that high. The players don't want that because its not annual earning, since its not real salary. | ||
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l3loodraven
2753 Posts
i am 5.1k you fucks | ||
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Sn0_Man
Tebellong44238 Posts
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PassiveAce
United States18076 Posts
pretty low compared to a lot of nations | ||
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Plansix
United States60190 Posts
On May 09 2015 03:04 PassiveAce wrote: isnt the highest US income tax bracket something like 40%? pretty low compared to a lot of nations You also get fewer services, like state paid for college. So not reason to pay more than you have to. | ||
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l3loodraven
2753 Posts
http://www.dotabuff.com/players/226213697 last game included the illustrious whitebeard yes i am a bad storm spirit palyer | ||
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Erasme
Bahamas15899 Posts
On May 09 2015 03:03 l3loodraven wrote: wow im so popular today i am 5.1k you fucks yeah you're not | ||
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Sn0_Man
Tebellong44238 Posts
ur most recent account has 27 games played and hasn't played in 2 months lel | ||
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l3loodraven
2753 Posts
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