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Adsense and Taxes in the Netherlands

Discussion in 'Blogging' started by wooSj, Sep 3, 2012.

  1. wooSj

    wooSj Junior Member

    Oct 6, 2010
    Likes Received:
    Far away in space

    I don't really know in what section I should post this, so if this is the wrong section please move my topic. Anyway the question is, I make quiet alot via google adsense now.
    ( almost 1k a month ). I live in the Netherlands and I read different things about taxes. The money is going straight to my bank account and I was wondering if I should let the tax service know. Or if I should just stay quiet. As they want 33% of the total income over a year and I think it's quiet alot.

    Now what should I do? Or is it possible to create a bank account which hasn't my social security number so I can let google send the money to that bank.

    Or maybe any other options?

    I hope somebody can help me here.

    Thanks in advance.
  2. 44proseries

    44proseries Junior Member

    Jul 11, 2011
    Likes Received:
    Offline/Online Marketing
    Sorry, but I don't think many people are going to assist you in committing what is essentially a felony. IDK how the Netherlands tax system works, but I am sure you have deductions you can take, etc... Speak with an Tax Pro.
  3. LOL-Blaster

    LOL-Blaster Regular Member

    Aug 29, 2012
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    Dude, just pay the tax.

    Consider it as paying the thug in the hood (government) for protection fee.
  4. phracktl

    phracktl Regular Member

    Sep 2, 2012
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    Disclaimer: Im not a tax expert and I suggest you research and find a *reliable* one in Netherlands. I can only speak generally about ways in which you can consider planning your tax affairs. The cost/benefit only you can decide. Its why we relish childhood, as its not simple being grown ups is it...;-) So:

    First: It would be wise on your part to assume that belastingdienst.nl has all the information about this income and that the junior officers just haven't got round to your case yet. My understanding is that bank payments that sum to over £10k per annum in EU are automatically reported up to tax authorities as part of money laundering regulations: even if passed in recurrent smaller amounts.

    Just like the internet, don't assume theres any privacy or shielding (unless your Queen B, QE2 or a Rothschild) and so don't attempt to evade the law. "In the duel between the world and yourself, always act as the worlds second" (Kafka). You can structure your affairs legally - whether offshore or domestic - and yourself and family still benefit greatly.

    If your total incomes - from employment, investments, other sources is more substantial you might consider finding a good accountant, one who isn't just a form-filler, but is enough on your side to save his fee and more. They never are on your side of course - just like lawyers - but you want balanced advice along with the administrative help. And yes, I think you need a mature male accountant, as the younger females in my experience are trained to be form fillers. Ask some local small business which seems sound who they use (dont ask in a mafia house such as a cafe or restaurant). A good accountant will help you think about your income in a wider context of financial planning - savings, investments, retirement. Just be aware when they are cross-selling and you will be a wiser buyer.

    Your tax obligations depend firstly on your domicile and residence status, as determined by your national authority (not by you). You need to look at all your sources of income - earnings, capital gains, etc, in the light of the current tax regime your under. If you are a Netherlands resident (company or natural person) you are subject to taxation on incomes arising anywhere in the world (look up country tax guides at Deloitte & Touche).

    Next, consider whether there will be advantages in conducting your affairs through a company. This is mostly a calculation of whether the cost and overhead of running a company are outweighed by the tax advantages - usually via deductions and dividend payments. You will be mindful that this will incur extra overheads & costs - your time, banking, specialist advice and establishment costs, administrative burden, regulatory requirements etc. Dependent on the tax regime, company law, etc...there can be advantages of incorporating: building owner equity, paying yourself through a combination of dividends and income (think of Steve Jobs $1 a year pay), tax advantages from investing in private pensions, running losses, deferring taxation through reinvestment, utilising loans to yourself from the company, using your moms tax free allowance...all the things they don't teach you in business school (remember the accountant, but also if you can find a mentor in the local business community thats great).

    Finally: offshore companies. These can be expensive - theres always costs beyond the headline "$800 for an IBC in the Seychelles." Also, a minefield, sharkpool and a headache. The worth of it very much depends how much you expect your future revenues to grow. From Netherlands my understanding is that Antilles, Delaware, Republic of Ireland etc are good offshore choices. Also consider the type of company: limited, LLC/LLP or IBC and EU laws. Going 'offshore' will necessitate an understanding of MLAT's and bilateral tax agreements with your country of residence and the offshore bases own requirements. In general here, buyer beware with offshore and look at all claims of providers with a sceptical eye (this is true anywhere, no?). I always recommend managing a domestic company first to get experience running a company in an orderly fashion subject to local conditions.

    Newbie here and wy first post. I hope it helps some. (Now, where do I ask about which is best CMS to use for monetising?…)