I am just curios about how things work in your country when it comes to taxing the money you make from your websites. So ... you make money of your websites, by whatever means. How do things work ? Do you have to be a legal entithy to justify the money ? Do you declare it as being income ? How do you pay your taxes, and what are those taxes ? What do you do to be "legal" ? I guess if you run a big website, you might have and need a company or something, but for the small webmaster, just making a few $_$ off adsense , how do you keep yourself "legal" ? I know every country is diferent, but we can asume capitalism principles apply everyware. It might be good to mention you country too. So let's talk, I really whant to see how the world works
Tax evasion is a crime, and not adhering to Income tax laws may land you in serious trouble. You may also be deported back to your home country, imprisoned or fined for tax evasion. I have a bunch of friends who own websites, and all of them report their income/loss to IT authorities on annual basis. German tax authorities are extremely efficient in catching tax evaders. I know a guy who was making an undeclared income of less than 60 Euro per month from a website and was caught by the police for tax evasion. He pleaded mercy on grounds of ignorance, but was let go only after paying a hefty fine!
Ofcourse, that's what I want to know ... how to evade (is this a word ? ) tax evasion. Ok, so in Germany you report your income, are you telling me the authorities are just going to take your word for it ? I think it may be helpfull to know how the sistem works in your country, so we can compare it to our own countries.
I don't pay tax and don't have enough info. about it. but it will be interested for me to know about it.
If you have a lot of money in internet accounts just transfer the money in a country where people not pay taxes (Monaco) or in a country where your transfer is not stictly verified(Switzerland). Then you go from your country to that country and get the money. If you have little money (for webhosting) make a company an put your hosting, software that use,hardware components that you buy at costs so you ballance to be zero. From the money buy stuff from onlineshops. No depends if advertising on net, or what are you doing are in country legislation.If not the law is in your favour. Also depends if you put your income at sell goods,advertising on net, author sell rights...., in some country taxes depends on the type of income and money from websites or else can't be stricly verified where come from. Let's say I have a site hosting in US,international domain and I am from Luxemburg(i am not in reality), how the hell the people with taxes from Luxemburg know that?
If youre talking about offshore, I'd really whant to know more. Is your state "ok" with that ? What taxes ? What do you have to do to make sure you don't get in to trouble. Income from websites, is a new domain, and along with the nature of the internet causes a lot of problems. In my country at least, I don't think the state knows what I do. Theres not a single college that teaches webdesign or internet marketing
In the UK - you are taxed on the "air" we breathe ... also for living, and for sleeping, eating, shopping, walking, on everything! apart from death, then i believe you are not accountable for tax, the others have to pay it for you.
This is not the problem. You will get a problem when the tax department start to look at your bank acoount and ask where you got the money from.
Well, here in South Africa you need to pay taxes if your yearly income exceeds a certain amount (I think R65 000 [$9800]). So far I haven't made enough from my sites to have to pay taxes, but since I started my business (not webmaster related) I have to register for income tax regardless. I doubt that I would have to pay anything though... However all income, both from my business and websites would have to be declared and used to calculate the amount of tax payable.
I'm espeacialy interested about webmasters (this is a webmaster forum ) Well, in my country, to justify your money, you need to be a legal form or entithy, either a "authorized person", that is asumed qualified for the job. Or you can make a SRL, wich is like a company. The bad thing is that you are considered separate from the company, and if you make money you can only get it out of the company at the end of the year, once a year ( It's a big headacke to start this company and to keep it runing, so I don't know if it's really worth making one just for a few $ off adsense. In average, for every 1 $ you make, you give 0,5$ (that's HALF of your income !!! ) to the state in taxes and expences. So, this is my country. Hows it like in yours ?
A tax is an amount or percentage of money that you pay to your government. It helps pay for roads, services, and President Bush's paycheck. I haven't paid taxes yet - I've only once made over $1000/year. Our rate is about 7-15% both federal and state
First I am at the begining,mostly a hobby,I have a real job,and pay taxes. Second, I use checks.The problems is if you earn a lot of money , but if you earn a little for pay webhosting and buy software or hardware online that you need I dont think is a problem.(your cost balance is almost zero). If you have income below a sum in some country you dont pay taxes. In my country the legislation is not reffering to "online work icomes". "start to look at your bank acoount and ask where you got the money from."Well I have friend in other countries that donate me the money