Fest artists have to pay $9m in taxes
The government is expected to collect at least $9 million in taxes from performance fees paid to overseas artists who took part in last year's Harbour Fest, which cost taxpayers $100 million.
Under the Inland Revenue Ordinance, money received by overseas artists for their performances in Hong Kong is taxable.
Financial Secretary Henry Tang Ying-yen said the American Chamber of Commerce, which organised the concerts, was finalising the amount of tax payable.
It was estimated that more than $9 million would be collected, he said.
'We understand that Red Canvas, the special-purpose vehicle of AmCham for organising the Harbour Fest, is in the course of settling the tax for overseas artists performing in the event with the Inland Revenue Department,' he said in a written answer to a question raised by legislator Leung Yiu-chung.
'For some artists, performance fees have been withheld by Red Canvas for tax payment.
'Other artists will pay the tax directly to the Inland Revenue Department.'
Government figures released last year indicated that Harbour Fest cost about $152 million to stage.
This included $89 million in fees to the artists such as the Rolling Stones, Santana, Prince, Westlife, Neil Young, Craig David and Jose Carreras.
The three-week event drew about 100,000 people and generated revenue of $52.9 million.
Under an agreement between the government and AmCham, the government had to cover losses of up to $100 million.
A film of the event geared to showcasing the event internationally is expected to be released shortly after costs estimated at $7.4 million.
