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Since When and for What we need a tax in IM?

Discussion in 'Business & Tax Advice' started by Droger99, Apr 1, 2018.

  1. Droger99

    Droger99 Junior Member

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    Hello, I am newbie.. I am just curious to what extent and for What we need a tax statement? Since when we need to organize it?

    I thought because we were working in the internet, we could ignore some shitty tax regulation. If not, since when we need to prepare one?

    Thanks
     
  2. krishnaverma

    krishnaverma Jr. VIP Jr. VIP

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    When you income starts falling in taxable bracket as per the law in your country.
     
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  3. Droger99

    Droger99 Junior Member

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    So it's based on the country we are living. Also, they detect the money from our bank accounts. Is that right?
     
  4. davids355

    davids355 Moderator Staff Member Moderator Jr. VIP

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    If you earn over the tax bracket then you need to pay tax.

    They’ll find out about your income when it goes into the system - more than likely it’ll be when you come up as a buyer or supplier on someone else’s tax records.
     
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  5. Droger99

    Droger99 Junior Member

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    I see.. Then first thing first, I need to know the bracket level in my country.. And be ready for when it comes
     
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  6. davids355

    davids355 Moderator Staff Member Moderator Jr. VIP

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    Yea, but also I think even if you are under that bracket you still need to file a tax return even if you don’t end up having to pay any tax.
     
  7. Droger99

    Droger99 Junior Member

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    What is a tax return?
     
  8. davids355

    davids355 Moderator Staff Member Moderator Jr. VIP

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    Well, I only know about UK tax, and in the uk if you are self employed you have to send details of what you earn each year to the tax office.

    Even if you earn under the allowance for paying tax (I think you get £10k income tax free or something like that) you still have to submit those details to tax office.
     
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  9. krishnaverma

    krishnaverma Jr. VIP Jr. VIP

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    That is not compulsory in my country. It obviously helps in many cases like taking a loan.
     
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  10. KHer0

    KHer0 Jr. VIP Jr. VIP

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    Depends on country

    In mine, no taxes on Internet income yet :)
     
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  11. DEFINE

    DEFINE Power Member

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    Go and visit the accountant in your country. It's the best way to see what you need to pay, if you need to pay and how much do you actually need to pay. That's how I did it. I visited few of them to confirm everything and then I went with the best option where I had to pay the lowest amount (nothing illegal just opening a different type of business that requires you to pay the least amount of tax).
     
  12. Gurugramite

    Gurugramite Jr. VIP Jr. VIP

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    Which country you are in? May be i can show my business runing from your country that will save me some tax. Also are you 100% sure?
     
  13. KHer0

    KHer0 Jr. VIP Jr. VIP

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    Believe me you don't want to have any relation with my country, I am looking for a way to runaway from it...


    However, many people already what you are aiming for. Open bank account in free tax area, and transfer only the amount they need to spend to their country, this should save huge amount of taxes.

    Most popular countries I know of for this :
    - Hong Kong
    - Free Area in Emirates.
     
  14. Droger99

    Droger99 Junior Member

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    Even in the Emirates, they start asking for some taxes recently.. It's called VAT
     
  15. Droger99

    Droger99 Junior Member

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    My IM business is very small.. I think I'll do it later after it scales up.

    Thanks for sharing, your experience will be useful for me.. :D
     
  16. dennisvds

    dennisvds Registered Member

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    Have dubai company, no tax for income outside the country. Cost around 3000 euro a month in fees, no taxes. Outside of that.
    Edit: tax consultant said vat didn't apply to us as a internet bussines
     
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    Last edited: Apr 2, 2018
  17. J0sh

    J0sh Jr. VIP Jr. VIP

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    I'm in the US, I've always used my SSN (before i got a real accountant) and then a EIN (Fed Tax ID) for _ANYTHING_ I make money from. 99.9% of these companies report to the IRS, and one thing you do not want is the IRS up your ass.
     
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  18. KHer0

    KHer0 Jr. VIP Jr. VIP

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    According to my knowledge, there is an open area in Emirates free of taxes, you can't enter any goods from it in the country, it works only as a port and it's free of taxes. This why all e-commerce companies open their business there.
     
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  19. Droger99

    Droger99 Junior Member

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    This is cool.. Now, I am thinking how to get my ass over there
     
  20. dennisvds

    dennisvds Registered Member

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    Yea you gotta go there though.. In the desert and all.
    Try most expensive ice cream in the world while you at it. Just get a tax consultant or there are companies who set it all up for you. Just google.. Good luck. Just remember if you still a resident in your home country you still liable for personal taxes
    With singaore company i remember dividend is tax free as personal income, yet you should get a international tax consultant to be sure of your own situation.
     
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