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Does a country know how much you have in your PayPal?

Discussion in 'Business & Tax Advice' started by BackY, May 30, 2017.

  1. BackY

    BackY Senior Member

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    Hello,

    I was wondering if you have to pay taxes for money you spend/receive on PayPal balance, but never withdraw to your card.
     
  2. AceWallGromit

    AceWallGromit Regular Member

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    Most countries demand taxes on earnings so I think you do. It doesn't matter if you leave it in PayPal or burn it or give it away if it's income earned it likely needs to be reported.
     
  3. WebzSuite

    WebzSuite Jr. VIP Jr. VIP

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    You do not pay taxes on spend money.

    If you've received money and it is your profit, then you should pay a personal tax from it.

    However it all depend from your country tax regulations.

    Perhaps you could tell us your country...
     
  4. BackY

    BackY Senior Member

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    I'm talking about Germany and Albania.
    I'm almost 100% sure that Germany is very strict about this, but I heard they give u a limit on how much you can earn before starting to pay Taxes. I think it's up to ~7k or ~17k euros.
     
  5. natmicon

    natmicon Registered Member

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    They only know if Paypal reports to the government. In the USA, it only happens at either 200 sales or 10k in transaction. Many people simply abandon their paypals, drain them, and setup a stealth paypal once they get close to the limit
     
  6. BackY

    BackY Senior Member

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    Isn't there a rule on 1paypal per person? or they open in someone else's name.
     
  7. X-R0

    X-R0 Regular Member

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  8. Matija

    Matija Newbie

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    If you received money as a compensation for goods or services you need to report it yourself. Otherwise you're tax evading. I'd check the laws in Germany but that's a serious offence.

    Now, the question is are you willing to take the risk :)

    Paypal doesn't have to report to individual countries because they are not a bank. I did a lot of research on this but focused on payoneer. I'm not even sure there's an upper limit when they report your transactions to your government like someone mentioned above. I know payoneer doesn't.

    The problem occurs if someone reports you to your national tax inspector. They have the possibility, in theory, to demand all your transaction data via a court order. I don't know how often this get's done. But my guess is fairly rarely. I know tax inspectors barely know of online payment services at least where I live and that's in EU also.

    I even asked my government tax department if I have to list my payoneer account as a bank account for my company and they had no idea what payoneer is :)

    So in short, you're probably safe.

    P.S. It doesn't matter if you withdraw it to your card or not. As soon as it hits your paypal you should pay taxes. In theory.
     
  9. frodskii80

    frodskii80 Regular Member

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    "Paypal doesn't have to report to individual countries because they are not a bank. I did a lot of research on this but focused on payoneer. I'm not even sure there's an upper limit when they report your transactions to your government like someone mentioned above. I know payoneer doesn't."

    Heard about AEOI and CRT?

    You can bet your ass Payoneer is going to sing like a bird!
     
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  10. BackY

    BackY Senior Member

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    I'm not a german lol, I'll try reading that with google translate but if you red it, could u please explain briefly what is it saying?
    So you saying it's safe to transfer money as long as u keep them in ur paypal balance, then no one knows about them.
     
  11. frodskii80

    frodskii80 Regular Member

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    Its not safe! Paypal is covered by AEOI (automatic exchange of information) that will be enforced in full 2018.

    You have to go stealth to be safe
     
  12. X-R0

    X-R0 Regular Member

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    Ah OK:D it's a blog about what is important for independent biz online... link=german taxes

    but @frodskii80 actually give you the right wink, you have to go stealth:cool:
     
  13. Abeodu

    Abeodu Newbie

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    frodskii80 has the most legit answer. Listen to him.