Okay so I have a friend who was telling me he gets most of his payments to his paypal account, although he's located in the US, his bank account is set up with paypal and is a secure account in Singapore (who doesnt charge taxes to foreigners unless you have more than 1.5 mil in the bank). So my question is, what are the legalities to getting taxed by the US government for an internet business? Since the business is online is it legal to have your funds go to a another countries bank and not pay US taxes?
US goverment makes their citizens to pay taxes on any income they make worldwide read this thread for more details http://www.taxforum.us/business-acc...ited-states-has-worldwide-tax-system-164.html
Isn't tax paid on the basis of which country you are a resident of? not 100% sure, thoguh i would guess you have to declar that as income.
in some countries it is only if you made it within the country in the US no, as long as you are citizen you must declare you taxes you made outside of the US
If his business is based in the US, he must pay US taxes. It doesn't matter where he banks his money, what matters is where his business is located.