1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Do we need to pay taxes for doing IM?

Discussion in 'Making Money' started by sandro13, Oct 25, 2011.

  1. sandro13

    sandro13 Newbie

    Joined:
    Mar 23, 2011
    Messages:
    28
    Likes Received:
    0
    Hi there blackhatters, poeple have been asking me this question all the time. Do we need to pay taxes to the government for every sales we make online? Im still confused right now as i know that in the US & UK they do charge tax when you withdraw your money out from paypal. Correct me if im wrong. Need advice here. Thanks
     
  2. wowhaxor

    wowhaxor Executive VIP Premium Member

    Joined:
    Apr 28, 2007
    Messages:
    2,021
    Likes Received:
    3,353
    Location:
    ?¿?
    Home Page:
    They don't charge your tax when you make withdrawls...

    You pay tax on INCOME, whatever you're getting paid/making. And yes you have to pay tax.
     
  3. Kickflip

    Kickflip BANNED BANNED

    Joined:
    Jan 29, 2010
    Messages:
    2,038
    Likes Received:
    2,465
    Are you asking ethically or legally? You do not get charged tax when you withdraw money out of paypal.
     
  4. zmoney

    zmoney Senior Member

    Joined:
    Apr 19, 2011
    Messages:
    814
    Likes Received:
    250
    Always have to pay the taxman.
     
  5. easy123

    easy123 Registered Member

    Joined:
    May 28, 2011
    Messages:
    91
    Likes Received:
    16
    Yes :)
     
  6. sandro13

    sandro13 Newbie

    Joined:
    Mar 23, 2011
    Messages:
    28
    Likes Received:
    0
    I see thanks for informing me about it. Cause my friends from the US keep telling me bout taxes that they have to pay as im leaving in asian country which im still not aware of whether to take this matter seriously. :D
     
  7. fabiola

    fabiola Newbie

    Joined:
    Jan 31, 2010
    Messages:
    14
    Likes Received:
    2
    as they say..in life there are only 2 certainties..death and tax..yes you have to pay tax :)
     
  8. CPAchick

    CPAchick Regular Member

    Joined:
    Jul 22, 2009
    Messages:
    410
    Likes Received:
    191
    Gender:
    Female
    Location:
    UK
    Is this a serious question?

    You have to pay taxes on your earnings in the UK, where I live. Once you go over the taxable allowance you pay tax! If you're below the taxable level, you don't pay any tax.

    BUT!

    You MUST legally declare every penny you earn and then the taxman will tell what, if anything, you have to pay!

    Don't mess about with the man!
     
  9. sandro13

    sandro13 Newbie

    Joined:
    Mar 23, 2011
    Messages:
    28
    Likes Received:
    0
    Legally i mean. Well as for me they dont charge any tax when i withdraw but my friends in UK does. Kind of weird but im not sure what policy do they have over there.
     
  10. sandro13

    sandro13 Newbie

    Joined:
    Mar 23, 2011
    Messages:
    28
    Likes Received:
    0
    Noted. Thanks for your share nowander my friend in UK keep ranting bout the taxes :D and its not easy to escape with that
     
  11. cbnoob

    cbnoob Senior Member

    Joined:
    Sep 27, 2010
    Messages:
    967
    Likes Received:
    455
    depends on where you are living
     
  12. sandro13

    sandro13 Newbie

    Joined:
    Mar 23, 2011
    Messages:
    28
    Likes Received:
    0
    hahah ya very true indeed. The government spares no one these days! recession is bad to worst
     
  13. daigun

    daigun Newbie

    Joined:
    Jan 29, 2011
    Messages:
    16
    Likes Received:
    0
    ^ This.
    But you dont pay taxes for sells you made online.
     
  14. Kikerinka

    Kikerinka Senior Member

    Joined:
    Dec 18, 2010
    Messages:
    876
    Likes Received:
    322
    Location:
    Central Europe
    Depends on ho creative your accountant is. ;)
    I paid no tax last year and earned plenty of money (not from IM though). You either pay tax, or have a good accountant who know how to arrange things so you pay little or nothing.
    Do not know where are you from, but you should be able to find some good accountants in your city.
     
  15. sciter

    sciter Junior Member

    Joined:
    Dec 9, 2009
    Messages:
    148
    Likes Received:
    56
    Haha, an accountant can not legaly let your taxable income ''dissappear'' :D

    If he is able too make you not pay taxes on like, 30-50k he is definetly doing something illegal.


    OR


    He let you avoid taxes by using offshore banking and company system.
     
    • Thanks Thanks x 1
  16. om39a

    om39a Regular Member

    Joined:
    May 29, 2011
    Messages:
    212
    Likes Received:
    67
    Location:
    BHW
    I don't know about other countries, But in INDIA, you have a valid pay play, to which you can withdraw, only when you have your PAN card linked to your PP account. Your pan card tracks of all your taxable income. Hence your withdrawal amount is also tracked, hence it is Taxable.
     
  17. Kickflip

    Kickflip BANNED BANNED

    Joined:
    Jan 29, 2010
    Messages:
    2,038
    Likes Received:
    2,465
    I don't get why people always claim you need a creative accountant to arrange things so you pay little to no taxes.

    If you don't want to pay tax, just don't report your income.
    If you truly understand tax laws, then why do you need an accountant to do your tax reporting?
    If you don't truly understand tax law, then your accountant is going to land you in jail.

    It all makes no sense. If you will pass a full audit, then your accountant isn't being creative. If you wont pass a full audit, then your accountant is just lieing to the government.

    Do you think the government audits every tax return or something?

    When the government gets your tax return, the ONLY thing they are doing to is inputting the numbers you sent them into a computer, then checking against any statements of income sent by an employer. If nothing mismatches, they just take you at your word.

    The only problems are created from an audit which a small % take place each year randomly, or someone claiming a deduction based on money they paid to you, or a financial institution (paypal or a bank) notifying them of a large payment you received.

    If you want to avoid paying taxes, just simply declare all of the income you made, then just put it as an expense paid for something random. You can even make a fake invoice for some foreign company, and make cash withdrawals for the exact same amount each month so you could pass an audit. Call it a web management fee and tell the government its vital for your business to operate.
     
  18. fad3r

    fad3r Power Member

    Joined:
    Sep 17, 2011
    Messages:
    733
    Likes Received:
    115
    Location:
    nyc
    If you are living in the US and make more then 600 a year you will be expected to pay taxes on it. However if you own your own biz you can operate at a loss for the first 3 years. Meaning I made 10k but I spent 20k and I want to write 20k off. Talk to your accoutant
     
  19. sandro13

    sandro13 Newbie

    Joined:
    Mar 23, 2011
    Messages:
    28
    Likes Received:
    0
    how much do you think to hire an accountant to do all these taxes?
     
  20. rakoom2002

    rakoom2002 Supreme Member

    Joined:
    Jun 5, 2011
    Messages:
    1,207
    Likes Received:
    873
    Occupation:
    SuperStar Threads
    Location:
    PDX Oregon
    For you guys when do you start claiming taxes? Like if you just make 100 bux here and a 100 there, its a pain in the ass. Ive been struggling over the limit. do you just keep track of what youve made over the year, claim that on your taxes and then pay what they ask?