Discussion in 'Business & Tax Advice' started by LOL-Blaster, Dec 10, 2012.
Do I have to pay tax on my income to the IRS?
Or is it handled by CPA Network, payment processor,...
You have to pay income tax at your place of doing business. Passive income from US does not incur tax liability at source. However, if you own equipment in the USA or employ US residents you will need to file taxes in USA by yourself. But again, with just passive income that's unlikely for affiliates.
It's you, as a income earner, who is liable to deposit and file tax return as per laid procedure
Moreover, you can ask your employer/client, if you are receiving more than exemption limit currently $600 for US citizens, to deduct tax and deposit it in Government account but still you have to file annual tax return.
Also, it depends on country you are operating from and prevailing tax laws in that concerned nation.
What if I am a vendor and sell stuff to US citizen
with a payment processor like 2checkout or clickbank?
Do I have to pay tax then?
There are workarounds but you need to be very smart in setting them up - making sure you leave no footprints!
Over the years have come across many and some still work very effectively, others trip you up...
There are several business write offs that you should look into. It is possible that you won't have to pay much (if any) taxes on your earnings, depending on earnings vs expenses
Your question can not be answered without details. If you sell tangible products that are shipped from US of course you will need to open a business in the US and file taxes for it.
If you sell services from your own country using an American billing company, it's passive income and taxable in your country in most cases, but this depends on tax code of your country.
Dude 2011nfl. What are you doing @ 4 AM in the morning
I am planning on selling a digital product.
The payment processor will be based in the US.
You won't have to pay taxes to the u.s.
cpa networks and payment processors have their own taxes to deal with, income taxes are what you may pay.
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