jason77 - 12:35 pm on Aug 31, 2005 (gmt 0)

if you are a sole trader, where you pay taxes depends on which country you are working for most of the time.

It is independent of your country of residence.

if you have a company that receives google payments, the company needs to pay taxes in the country where the company is run from, which means the country of residence of the company director or where the company director is working from respectively. if the company director is travelling, and is not living/working from the UK, you need to pay in the country you spend most of the time.

If there are several company directors, then where most of them live. If you have one company director travelling and one staying at the same country and there are some employees in the same country it is easy to prove that the company operates from that country.

The only exception is for people that were born in the USA as the US laws weird and makes you pay taxes in the USA in any case. Due to double-taxation treaties those people can get a refund of taxes paid abroad if they have already been paid in the USA. In countries that have not joined any double-taxation treaties, you may end up paying taxes twice.

So an US American living on the Bahamas needs to pay taxes in the USA unless he marries on the Bahamas and becomes a Bahamian (or unless he marries in any other country and gives up US citizenship).

A British citizen living on the Bahamas does not need to pay taxes at all.

A company on the Bahamas with a company director in the UK does not need to pay taxes if the company is run by other people on the Bahamas. But if he receives money from that company he would beed to tax that in the UK.