Paying Tax from Paypal earnings

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jagtheboat

Newbie

Nov 7, 2013

9

1

• Jun 12, 2014

• #1

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.

 

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burnett4congress

Regular Member

Nov 17, 2011

400

167

• Jun 12, 2014

• #2

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.

 

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AFTek

Newbie

Aug 24, 2011

11

3

• Jun 17, 2014

• #3

burnett4congress said:

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.

Click to expand...

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.

 

zanesta

Regular Member

May 21, 2014

444

53

• Jun 24, 2014

• #4

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

 

infoasian

Supreme Member

May 12, 2011

1,419

438

• Jun 24, 2014

• #5

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.