dear member, If i earn in PayPal in US, I have to pay texs ? if i have to then how much? if i earn 2/3 K in paypal how much i have to pay texs. please know me a details about that. Thanks.
You only need to pay tax to the US governement if you have a business and it's located in the US, otherwise tax has to be paid in the country where the business is located.
I basically agree with Isaak. Merely using Paypal to collect amounts from, say, US customers doesn't mean you're doing business in the US if the work is performed someplace else or shipped from someone other point. FWIW, I'm a tax accountant in US.
Where is your business inc'd? Where do you declare your income? That is where you will be subject to taxes. It is up to you to declare money as income or not. I would not try to beat the system either. Report what you make. I don't know about any of you but I want to pay the most taxes out of all of you.....
if you live in US , you might have given your SSN in paypal to get more than $500 out of your account . If so, I guess they will send you 1099 tax form. then you need pay tax on that. if you dont live in US, and not register your company in US, then forget about the US tax.
Paypal is only a medium for transferring money. You should not get a 1099 from paypal even if you live in the US. On your own, you need to claim the revenue you make and pay taxes according to whatever laws your country has.
It's very important to pay taxes on income in the United States if you're making real money and getting paid through PayPal. The IRS is on a collection binge right now and more are getting audited than ever before... If you're out of the country I'd say you should be fine but if you're located in the U.S. be sure to claim any source of income - especially when getting paid through PayPal... Best of luck !
It all depends where you are physically when you perform the job and when you receive the money. That is the test of the tax domicile. If you needed to go to the US to do the 'job' and get paid there then you be subjected to US taxes. However if you are in India and servicing a US customer remotely then you pay indian taxes as it would be deemed that you are india when you perform the work.