I wanted to know are we supposed to pay Income Tax on earnings via PayPal other than the fees already taken ? It says PayPal includes all applicable taxes. Regards
You have to pay tax on your paypal income as it treated as normal income. Criteria depends on your country's tax structure. DON.
In most countries, any income earned by you would be taxable in the country you are located when you earn that income. Income = Total Sum Received - Cost of product/service to you - fees/expenses paid. Paypal income is not exempted from your tax declaration even though Paypal is located in a country which is not yours or whether you bring the money back to your home country. The important test is your domicile which is where were you when you earn the income.
It depends on the country you live in, but as Eddy said, you will have to pay tax. The Paypal fees will probably be allowed as a business deduction, and you should be allowed to claim certain other business expenses ( Domain costs, internet bills) as business deductions. You will have to pay tax on the balance. Talk to an accountant in your area for better information.
Income is an income so long as it appears on your financial records, by whatever means it may have been earned! Paypal only deducts its fees and not taxes, since it does not pay them on your behalf ! Regards, RightMan
Withdrawing money from Paypal to ur country might charge u some fees thts it.. i dont think tax is applicable..
I think paypal will not care into any tax statement what soever,everytime the money come to your account,paypal cut it ,I think that what made paypal collect some profit or more from the billions dolar expense daily,I think for one of you who has the idea of "tax by country" I think paypal dont do that,
Tax is a way that the government gets money from you as an earning citizen. Therefore, PayPal is not going to pay your tax for you. Paypal charges a fee for their service, in the form of those deductions you see on each payment you recieve, or in the case of charges for withdrawing funds to your bank etc. PayPal is a business and this is how they make their money. If you are just getting a few dollars on PayPal for selling your old books on eBay then you won't have to pay tax. But if you are earning money, from selling websites, from writing articles, etc. etc. then you will have to pay tax as this is an earned income. It is just like earning a salary in a job - everyone needs to pay tax on their salary. You will need to contact your country's tax office and declare your earnings.
Yes, I assume PayPal don't report your funds. So in theory you could avoid paying tax by choosing not to declare your PayPal income, depending on how you feel about that. In the end it is illegal to hide your income, and you will be fined if the government finds out.
http://www.auctionbytes.com/cab/cab/abn/y08/m08/i06/s01 And the money goes into your bank account, so there are plenty of ways for the tax guys to sniff you out.