Antony Joshua knocks out Jake Paul but may receive less money than opponent

Nigerian-born British fighter Anthony Joshua knocked out YouTuber-turned boxer Jake Paul at the Kaseya Center in Miami, Florida, USA in a bout which was broadcast live on Netflix.

Both boxers are to take equal half of the $184m expected profit in the fight that was scheduled to last for eight rounds, but Joshua secured victory in the sixth by knocking out Paul, who failed to beat the referee’s count in the ring after being knocked to the canvas on multiple occasions throughout the mismatched encounter.

However, Joshua might not see more than $37 million because one of life’s certainties: paying tax.

Joshua’s record now stands at 29 victories from 33 fights as he secured victory upon his return to the ring since losing to Daniel Dubois at Wembley Stadium last September.

The $184m widely circulated would mean that with it being split evenly, each fighter would receive around £70m affter processing.

According to a press release citing research from data experts, AceOdds, Joshua will be hit with taxes both in the USA and the UK, meaning almost £33m could be taken away from his fight purse in the form of US Federal Tax, payments to HMRC and National Insurance contributions in the UK.

The press release says, “Research from data experts at AceOdds has revealed that, assuming the £70m figure is accurate, Joshua would be lumbered with a total tax bill of £31,386,203 on his earnings from the fight.

“That breakdown of that cost would be split between both the USA’s and UK’s tax authorities, with 37% of his earnings – £25,867,333 – going straight to the IRS to cover Joshua’s US tax burden.

“While there is no state tax in Florida, the United States government charges income tax at a highest rate of 37%. With the fight happening on US soil, Joshua would be required to pay their share first, which would equate to £25,867,333.

“Joshua would then also be liable to pay UK tax on global income, also at the highest rate of 45%. But, having already forked out a hefty amount stateside, the amount owed would be the difference between his total UK liability and the US tax already paid. That would result in £5,618,870 going to HMRC.

“Given his total earnings, Joshua would then need to pay another £1,401,257 in National Insurance contributions.

“After making all payments, Joshua would be left with £37,112,540, or just 53% of his initial £70,000,000.”

Meanwhile Jake Paul will pay only US tax.