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Confused about my legal status (Paypal)

Discussion in 'Business & Tax Advice' started by rees9, Dec 21, 2015.

  1. rees9

    rees9 Junior Member

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    Hey there. I'm confused about my legal status. Technically I don't live anywhere. Practically, I live in Norway now but haven't yet registered my residence. Also there's no way I could possibly get a local tax ID earning online. To get it, I either have to have a day job locally (which btw, isn't possible to get until after a month, when I'll be able to register my residence) or run a local business (I'd have a very hard time proving my online affairs as Norwegian business). Previously I lived in UK and have UK tax ID. However, I have filled some form in the past where I stated I'm moving out of UK, plus I have a UK student loan there so in case I make decent money, I'll need to pay to them. I'm a Lithuanian citizen and could easily get a Lithuanian tax number. However, if I do get one, but don't have any income or am not a student, I'd need to pay a small monthly tax.

    So my questions:


    1. Where should I "live"? In Lithuania?
    2. let's say I want to register a Paypal biz account. Will they report my earnings (let's hypothetically assume I'll earn a lot) to a country where my Paypal account is registered?
    3. On my personal account it says it's verified, but I don't remember having to prove my identity to them... Will they ever ask me?
     
    Last edited: Dec 21, 2015
  2. eridonvevo77

    eridonvevo77 Regular Member

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    1.You dont have to pay taxes for money that comes in to your PP.
    2.You have already verified with your credit card details.They may ask you to verify your Id in cases you have broke they rules.
     
  3. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Jr. VIP

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    Rubbish, don't give advice when you don't know what you are talking about. If the money is income from business/work then it is taxable.


    OP, your legal status will boil down to citizenship and residence.
    Where were you born?
    What passport do you hold?
    Where do you live?

    1. Speak to a Lawyer and an Accountant for professional advice.
    2. Paypal do report income once your account reaches a certain threshold
    http://lmgtfy.com/?q=paypal+tax+reporting
    3. Yes, they can ask you for further details or identification at any time.
     
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  4. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Jr. VIP

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  5. goodperson

    goodperson Elite Member

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    You ask a Lawyer for your situation. They will give you good advises.
     
  6. eridonvevo77

    eridonvevo77 Regular Member

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  7. eridonvevo77

    eridonvevo77 Regular Member

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    Rubbish?? Why do you offense me? You can get hurt for that
     
  8. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Jr. VIP

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    You need to ask a Mod to close the other account.

    Rubbish, how can I get hurt?
     
  9. eridonvevo77

    eridonvevo77 Regular Member

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    You dont want to know,belive me.Just dont offense people without any big reason.
     
  10. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Jr. VIP

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    I do want to know, believe me.
    Man, kids making empty threats on the internet is so amusing. Grow up Dude.
     
  11. rees9

    rees9 Junior Member

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    But will Paypal really report earnings to any government? What if I am a tax payer in Zimbabwe?

    Also, what's the legal difference between personal and biz accounts in this regard? Do they have different thresholds from where your earnings get reported?
     
  12. eridonvevo77

    eridonvevo77 Regular Member

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    I just dont understand english 100%,i saw the thread and i gave my opinion(as much as i know) but you dont have to offense me.I dont think i deserve that Rubbish you said anyway im out of negative things.cheers
     
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  13. diemou

    diemou Power Member

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    PayPal is different for every country and tresholds are different. Yes, you have to pay tax otherwise you will get reported for laundering money which you dont want.
     
  14. diemou

    diemou Power Member

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    Main problem is that you said he does not need to pay Tax. You could get him into big troubles, you know?
     
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  15. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Jr. VIP

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    I presume they report it to the government the account is registered in.
    I believe both accounts will report it if you receive a payment of $10000 in a lump sum or when the account has $20000 of transactions (I pulled these figures out my ass, so you will need to check).
    One of the reasons they legally have to report it is because of money laundering laws.


    Relax mate, all is good. When I said "Rubbish" I meant the what you said was rubbish. Rubbish = Wrong
    I wasn't calling you rubbish. I didn't mean for you to take offence personally.
     
  16. rees9

    rees9 Junior Member

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    Lawyers and other bureaucrats often have no clue as to what is working online.
     
  17. eridonvevo77

    eridonvevo77 Regular Member

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    I dont pay any tax for the money i get on my paypal i though he was talking about personal acc..
     
  18. islandman1010

    islandman1010 Elite Member

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    Why don't you be realistic and stop asking hypothetical questions. Work out where you are living and then ask about that. People can help you then. There is nothing "technical" about where you live. If you currently live in Norway and receive income in your Paypal or in any other bank etc you will owe taxes in Norway so unless you have an arrangement in another country to pay them, you are obligated to declare and pay your taxes there. Just because you might not have registered as a resident yet means nothing for tax law in the EU. Norway although not part of the EU uses all the same systems as the EU the same as Lithuania does. If you think that it's possible to remain unregistered somewhere to avoid paying taxes on income to your Paypal you are not correct. Also Paypal will report it to the last tax authority they have on your record. If that's an EU country then that will be shared throughout the other 28 countries.
     
  19. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Jr. VIP

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    For a Lawyer, you need to call around and get recommendations to find a good one that specializes in this area.
    For an accountant, they should be able to give you advice as your declared income shouldn't usually matter if it is made on or offline.
    You also need to consider how you set up your business and how you are trading.
    If this is just a small amount then don't worry and just set aside 50% for any future Tax implications.
    You won't get the best advice on a Forum, you need to speak to a professional, if you are making a decent amount of money.
     
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  20. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Jr. VIP

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