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Paypal. Let's say i do not withdraw. Taxes?

Discussion in 'Business & Tax Advice' started by xmastex, Nov 27, 2008.

  1. xmastex

    xmastex Registered Member

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    Hey there.
    Let's take this example:
    - I'm doing CPA (or aff marketing or whatever) and the company pays me via paypal.
    - I already filled the w-8 form for the company's site (as i'm not from the usa)

    I know that if i withdraw my money from paypal to my CC (verified account), i must pay taxes if i earn something above a limit (which i don't really know what it is).

    But what if i do not withdraw the money and i use them for buying things on the Net (ebay or any other e-commerce site)? Do i need to pay taxes on them?


    I guess NO because paypal it's an electronic money. But this is just IMHO.

    Clear me up guys
     
  2. vied

    vied Newbie

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    I think in that case there is no problem.
    Especially if you are not in the States.
     
  3. mattstrike

    mattstrike Regular Member

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    Occupation:
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    If someone files a form saying they paid you, then Uncle Sam will take it very personally if he does not get his cut. If you are a foreign national, and your earnings are below a certain threshold, it is possible that nothing would happen, but it is also possible that your case might get flagged.

    If someone starts looking into your case, you can bet they will call the network that filed the papers on you in the first place, and compel that network to reveal how you were paid (the network will probably suspend you at this point). They will then talk to PP who will immediately freeze your account. If there is not enough left in your PP account, they might very well, depending on where you are from, attempt to get a judgment against you in your home country for the amount they figure you owe.

    Talk to Uptown Bulker. Get incorporated. Pay a little bit of money to an accountant, and pay little to no taxes, legally.

    Or take a chance, and hope for the best.

    Best of luck.
     
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  4. Laser

    Laser Jr. VIP Jr. VIP Premium Member

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    yep.
    I had to pay about 7k back taxes.

    sucks;)
     
  5. davioli

    davioli Regular Member

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    So..lets say I get my check of 5 or 6k from copeac....I will get this money to my country which is not USA. Do i have to pay taxes?...doesn't the w8 form imply I will be taxed before i get paid?
     
  6. Uptownbulker

    Uptownbulker BANNED BANNED

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    If you are registered as an individual, regardless of your country of origin, you could well be subject to witholdings.

    As a corporation, you are not.

    Figure it out.
     
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  7. davioli

    davioli Regular Member

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    Yes...so they will directly remove the witholding tax right..... i don't care about that...as long as i don't have to pay from what I receive....
    Lets see...if they take away too much I might have to take you up on your corp offer uptownbaulker....:)
     
  8. Uptownbulker

    Uptownbulker BANNED BANNED

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    The normal witholding rate is 28%, straight off the top. With a corporation, you can declare the corporation to be exempt from witholdings and all of the money is paid to the corporation.
     
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  9. xmastex

    xmastex Registered Member

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    gosh i'm so n00b, i'm 17 and i dunno really what to do
    I mean ok, if i have to pay taxes i hope they're gonna be less than my total earnings.
    but what i materially need to do?

    plus i have to search something more about "corporations"
     
    Last edited: Nov 28, 2008
  10. antsaoo

    antsaoo Supreme Member

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    I was thinking getting paypal / epassporte card so i can withdraw form ATM's to avoid taxes. Since there is no way in hell im gona pay them +20% ( its 28% from 30k i think.) + then mofos still want 22% as tax you ad to every item you buy from shop or so ( dont know that tax name in english)

    like this guy won 5 million from casino and he had to give 60% to government. And people who play online poker need pay 60% from winnings that were not won on european poker room.

    But when you lose money you cannot get any discount. Like you first win 1 mill then you lose 2 mill. well you still going to pay 600k for that 1 mill. Some badass mofos in government lol
     
  11. 229tom

    229tom Regular Member

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    Yeah fcking twats! :rolleyes:
    .
     
  12. xmastex

    xmastex Registered Member

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    can somebody pls explain what do i MATERIALLY need to do to declare my income from the Net?
    Now i'm reading in some italian sites that i need to have a VAT Number if my earnings are continuous, constant...
     
  13. java

    java Guest

    You need to check the tax codes/law for your country.
     
  14. bizcredit

    bizcredit Power Member

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    You can withdraw the money, use it as an expense, and still pay no taxes. If you have no profit, you have nothing to tax.
     
  15. iulianh

    iulianh Regular Member

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    I have to pay in may 2009 something around %18-19 taxes for all the earnings i got in 2008 ... this is in my country .