Let's Talk About The Elepent In The Room - Tax and Money!

[TravelingAffiliate]

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Hey guys!
I want to know how people pay tax.

I know this is a big community with people from all around the world but I want to know
how people from around the world pay tax or don't pay.

So...

1) Are you reporting on your earnings?

2) If yes, how much is the government tax that you are paying?

3) If not, how you do it, it's not dangerous?

4) Do you guys have any legal tricks and tips on how to avoid paying tax (or at least part of it)?


This thread is basically in order to help me, and I am sure other people too, in order to
Maximize our profit by minimizing the money we will pay for tax.
So share any piece of useful information that you have got!


Let's see The Power Of The Masses!

 

[CPAHub]

Hey,

I am not an affiliate, I am an affiliate manager of an affiliate network, however, I still feel that my reply could help you.

Yes, as an affiliate network we pay taxes. We are a registered company so we just fill in our tax forms. I am not sure about the exact percentage since I am not the person who fills in the tax forms. I believe it is more than 15% though.

As for our affiliates (and for you), I highly recommend paying your tax. It might be easy to avoid taxes if you do not earn a lot. But if you are going to earn more, it might get suspicious. It's better to pay taxes from the beginning.

It's not very hard, a lot of affiliate networks provide tax documents either way. Most of our affiliates pay their taxes.

 

[TravelingAffiliate]

Hey,

I am not an affiliate, I am an affiliate manager of an affiliate network, however, I still feel that my reply could help you.

Yes, as an affiliate network we pay taxes. We are a registered company so we just fill in our tax forms. I am not sure about the exact percentage since I am not the person who fills in the tax forms. I believe it is more than 15% though.

As for our affiliates (and for you), I highly recommend paying your tax. It might be easy to avoid taxes if you do not earn a lot. But if you are going to earn more, it might get suspicious. It's better to pay taxes from the beginning.

It's not very hard, a lot of affiliate networks provide tax documents either way. Most of our affiliates pay their taxes.

Yeah for sure, but it's hard to know that you need to pay up to 50% sometimes, from your profit to tax.

That is why I am asking.

 

[CPAHub]

Yeah for sure, but it's hard to know that you need to pay up to 50% sometimes, from your profit to tax.

That is why I am asking.

I have to agree with you. However not paying taxes is illegal :S

 

[azgold]

Yes, I absolutely pay taxes on anything I make online and offline. It isn't just income tax we have to pay here, we also have to contribute to the Canada Pension Plan (CPP) and some self-employed people pay their own Employment Insurance (EI). Those figure into the tax structure, too.

In my province, if you have a business license, you can claim your expenses and sometimes a portion of your phone and mortgage as deductions on what you owe.

In my opinion, it's easier to be upfront and honest with your earnings and pay the government its dues than it is to avoid doing so, at least in the long run. You get caught evading paying your taxes, well that's not good. And if you let some years pile up without filing, you're going to have a mess to deal with.

Remember, there is a paper trail.

 

[Graybeard]

Itemize your COGS (Costs of Goods Sold): In an online business these are generally;

• advertising
• SaaS software that is paid for monthly
• any training material that you pay for that is related to your online (or other) business activities
  
• dedicated office space that is in your home that is used for business purposes --not your dining room table or some other mixed use location.
  • office furniture
  • office equipment
  • improvements and maintenance to your working area; paint, carpet, pictures and paintings, other
  • improvements and maintenance to the total property that can be related prorata to your property used for the business, e.g.; 34% of the total area is used for business ...
• internet, web server telephone expense used in your business
• small computer parts or some peripherals with short lifetimes -- mouse, keyboard, flash sticks, etc are deductible in the year placed in service.
• computers are usually depreciated over a period of years -- however there may be accelerated depreciation available allowing you to deduct the full costs.
  
• rent paid for business space
• travel for business such as,
  • seminars
  • trade shows
  • air fair and taxis, auto rentals
  • hotel costs
• entertainment expense; the share of the costs of entertaining clients or employees.
  
• depreciation on other assets purchased and used in the business such as,
  • vehicles
  • trucks
  • buildings
  • installation costs of services or utilities or their long term improvement.

Speak with a qualified tax accountant in your location. Accounting and tax laws differ by their jurisdiction. The above suggestions are based on the US tax codes. I have no idea what might be available in your jurisdiction. Tax codes are national not world-wide.

*The above is not offered as accounting advice and only as general conversation -- consult with an accounting professional licensed to operate in your legal jurisdiction.

 

[TravelingAffiliate]

Yes, I absolutely pay taxes on anything I make online and offline. It isn't just income tax we have to pay here, we also have to contribute to the Canada Pension Plan (CPP) and some self-employed people pay their own Employment Insurance (EI). Those figure into the tax structure, too.

In my province, if you have a business license, you can claim your expenses and sometimes a portion of your phone and mortgage as deductions on what you owe. I

In my opinion, it's easier to be upfront and honest with your earnings and pay the government its dues than it is to avoid doing so, at least in the long run. You get caught evading paying your taxes, well that's not good. And if you let some years pile up without filing, you're going to have a mess to deal with.

Remember, there is a paper trail.

Yeah definitely right.

 

[Graybeard]

...

Remember, there is a paper trail.

More and more so these days --truth

 

[Bloody Tourist]

My company is registered in the Curacao e-zone. I pay 2% tax.

 

[TravelingAffiliate]

My company is registered in the Curacao e-zone. I pay 2% tax.

But the question is if you need to pay tax in the country you live in?

 

[Graybeard]

look up the meaning of income repatriation