The problem is:
my CPA pays using Check, Wire transfer or Paypal...
in order to receive the money you need a bank account. Every bank acc in my country is being checked by the government of course inorder to prevent black money....
Yes but the government doesn't necessarily look at that the same as they do income for an employee. You're basically a sole proprietor business and that check is your gross profit. What the tax collectors will want to see is your bookkeeping that itemizes all your business related expenses and then subtracts them from that gross profit to show what your actual net profit is. That final Net Profit figure is the one they'll be taxing you on.
So your goal is to make sure you have all your expenses accounted for that are involved in making that money, so that you'll only have to pay taxes on you're actual profit. You're goal is to make sure that the taxes you do pay are only those you owe. If you spend $500 to make $800, then you don't owe income tax for the $800 because your actual income from the deal is only $200. In that case the $200 is what you're supposed to pay taxes on.
The way to make sure that happens is to do some bookkeeping and make sure you account for all your expenses.
As far as not paying taxes at all...
Well..., even if you think the government doesn't always use it's money wisely, it's still responsible for the roads you drive on, the police that protect you, the agencies that make sure the food and products you use are safe, (even health care in some countries), in fact the whole infrastructure that you depend on everyday. If you get any benefit from all that (and you do, even if you want to deny it. lol) then you shouldn't be against paying taxes.
You just want them to be reasonable taxes on what you actually earn so that you're only paying your for fair share.
Guys, you can write off expenses, but u have to show the invoices for that. You can buy computers, paper, and other biz related things to deduct from your income, but you wont gain anything.
To some extent yes, but overall they aren't going over your books that thoroughly, they mostly just want to make sure the expenses you claim are reasonable and applicable. Unless your books are audited the actual proof in the form of receipts won't be an issue. Although there are ways to deal with it that will even help in that event.
Thinking of a solid solution myself. I have started with a construction where you will be paying expenses to a webdesigner somewhere in Asia. But actually that webdesigner will be you ;-)
GhettoGong
That's one of those ways. lol
irate:
edit -
OK, so $800 - $500 actually equals $300. It take some extra creative bookkeeping to make it equal $200. lol. Thanks for pointing out my error plerer.
