The TOS of Google is quite confusing.I do not live in the US but the TOS says that your host should not be in the US.If my ads are in blogspot what shoud I do?Fill the tax form?
I found this... As for me. Well, my host is in the US but I don't have any business activity in the US & I haven't submitted my tax info to Google. I do however pay tax on my AS earnings here in Australia.
Julia, could you let me know why? If you are earning your money in the US why would you pay taxes in Australia? You are not working there and your source of income is not from that country
In general all income is taxable in the country of your residence All taxes go for the government (local or central) of the place where you live... local tax, state tax, SSN, Medicare etc.
That is not logical. If you are earning your money from another country why would you pay income taxes in a different country? If you lived in England, your grandma from Russia sent you $5000 as a birthday present, would you have to pay taxes on it? And If your grandma is working at Russia and sends you $5,000 each month for you to party around... would you have to pay income taxes on it?
i'm not sure how does it go for presents but if you are using the infrastructure and the social goods of a country/community you pay some taxes for it It's a little bit tricky cause when I stayed in the usa for a few months I paid taxes and then they gave the money back. so I believe taxes are paid in the permanent country of residence
Don't know how it works in your country but ill asume it's the same way. If Grandma sends me money from USA to Portugal. I don't have to pay taxes. If grandma sends me a gift from USA to Portugal i may have to pay taxes! If someone sends me (or i buy) something in the USA the box will go to the Customs and they decide if i need or not to pay taxes (some of us pays others don't - don't ask me why... ). Now if a company sends you money you need to declare that money and justify why did you get it. Did you sell something? Did you made any kind of job for them? So you may have to pay taxes. Atleast it works this way in my country
I'm in the UK and as I understand it you do have to pay tax (in the UK) for any money you have earned, whether it be from activities in the UK or from activities abroad. In many cases that includes presents. Google shouldn't have to collect the US taxes from a UK publisher (because there are none), but I'm sure the UK publisher is responsible for declaring his earnings and paying his taxes in the UK.
Well the tax laws are grey in Australia. If what you do is considered a hobby then the money you earn is tax free. My website borders on being a hobby. The tax office couldn't tell me for sure, but the accountant who does the tax for my employer & my own personal accountant both told me that I should declare the income. I would rather be safe than sorry. I have to declare any income I earn to the Australian Taxation Office, including money which comes in from overseas. I'm not sure what the status is on cash as a gift. Mum sends me money via Paypal for my birthday & Christmas (around $100 AU a time), but I don't declare that. When I declared my income to the tax office, I declared everything I earned from my website. That didn't just include my AS income, but there were other sources of income. It was all lumped together & declared as a 'whole'. Not broken up. Because I declared my income, I was also allowed to claim website expenses such as hosting, software, electricity etc. If my outgoings exceed my incomings, then that goes towards a tax credit. I have no idea why it is like it is. I do the work which makes the site from my home in Australia, I receive the benefits of living in Australia, such as using our roads, free medical care & all the other things that come with living here, and therefore feel more than obliged to pay my taxes in this country. But to summarise, I followed the instructions of my accountant. But don't all yell at me, I am not an expert in tax. That's why I ask people who know better than me To be honest, I'd be a bit peeved if I had to pay tax in the US when I don't do the work to make the money there, and I don't receive any benefits of living there. I would be even more peeved if I had to pay tax in both the US & Australia.
For me (here in The Netherlands) it's roughly the same way: I make money through adsense, on a USA host, but pay taxes in The Netherlands. Bonus: less taxes because the money is made outside the EU. I do think this kind of rule is bound to change at some point, because the internet does make international borders less relevant, but this is how it is. It does have to do with how taxes work: they go towards the government of the country you live in, so they pay for education for everybody and roads and stuff like that. So it is logical that my taxes go to the Dutch government (and the indirectly the EU a bit), not the USA government.