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Paying Tax from Paypal earnings

Discussion in 'Business & Tax Advice' started by jagtheboat, Jun 12, 2014.

  1. jagtheboat

    jagtheboat Newbie

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    Something puzzles me. I always thought you paid tax to the country of the income source. I am a British expat living in the Philippines. On money earned online from the US in which of the three countries do I pay tax? I have bank accounts in England and Philippines.
     
  2. burnett4congress

    burnett4congress Jr. VIP Jr. VIP Premium Member

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    Since the income goes through the US, it will depend on how the payer is reporting your income, if at all.

    Chances are you should pay taxes in the Philippines. Most countries do not tax their citizens on foreign earnings - so I don't think the UK will be expecting taxes from your foreign activities.
     
  3. AFTek

    AFTek Newbie

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    Or, like the US, they may have a certain amount that exempted. If you're just getting by, they'll let the resident country collect. If you're raking it in, they want a share.
     
  4. zanesta

    zanesta Regular Member

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    Depends where your Paypal is set. Because that's the Paypal you're putting your earnings into (Im assuming you get paid via Paypal)
     
  5. infoasian

    infoasian Supreme Member

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    If you live in the Philipines legally you will need to pay taxes there. If you are just staying there as a long term tourist you might be lucky because you can't work unless you break the law.