Here is the situation: Lets say I make money with several affiliate programs including referral income, paypal donations and so on... these earnings are paid to my paypal or epassporte and from there I pay for hosting and marketing websites again... there are no invoices and bills. After this all I get some profit which I transfer to my bank account. Is this what I need to TAX in my country? Do I need to report only what comes to the bank? Is it needed to prove it somehow with invoices or what ever? How do you guys do it? Isnt it better to make offshore company if the TAX is about 20%?
If you're from India then you need to follow F.E.M.A and F.E.R.A, not ony pay TAX Also you need to register in your country for F.E.M.A.
i see that you are from Czech Rep. why not consider incorporating a company either in your country or somewhere offshore? if you go offshore there might be a problem to open bank account for your company as most case a bank reference is required. Further banks might ask for source of funds if you do big transactions. Get something to prove your income. It can be print of email. why not consult a tax expert.
if you receive income you msut report it at your tax return, best person who would know your local laws about this would be local accountant, so find one and talk with him what you must report and how and where, based on this info you can think about what to do to minimize your taxes