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AdSense Payment

When are you expecting to receive your check?

     
12:14 am on Jul 10, 2003 (gmt 0)

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Any guesses on when AdSense will pay for last month?

I understand they have a month to pay.. Just wondering what your thoughts are.. will it be less than 30 days? 15 days?

I am expecting to hear some news about it anyday now.

10:56 pm on July 19, 2003 (gmt 0)

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My only complaint is that they add the cheque to the account balance immediately

That is a complaint? LOL. I am fortunate that my check DOESN'T hold US checks ;) One used to have a thirty day clearance policy on all US checks (I am in Canada), needless to say I found a new bank!

I do know that AdSense doesn't send payments until balances reach a minimum of $100, so you don't have to worry about getting checks that are worth less than the cashing fees.

And I agree about not burning bridges - if you wouldn't have dropped them if AdSense didn't come along, you might not want to drop them completely. Although it would be tempting to some to tell underperforming networks to "shove the untargetted $.15 CPM ads up their ***" as woop01 so eloquently said ;)

11:26 pm on July 19, 2003 (gmt 0)

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Like I said, it's been a long time coming. Even longer than it takes them to send payments four months after the end of the relevant quarter.

I had wanted to get rid of them for a long time for no reason other than they put those "Your computer is low on resources..CLICK HERE" and bang the monkey ads on my site. Just having relevant ads for my users is worth it.

11:28 pm on July 19, 2003 (gmt 0)

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I'm in Indonesia, my US dollar account is with a multinational bank that refuses to take notes from the 1996 issue, won't even look at them, and will also refuse any notes that are even slightly creased or dirty.

I expect I will be waiting a long time for my cheque to go thru assuming they accept at all.

9:14 pm on July 20, 2003 (gmt 0)

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Now that they have dispatched the first set of checks, I am dying to lay my hands on it ;)
8:04 am on July 25, 2003 (gmt 0)

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This is where it becomes murky. Say I have a web site aimed at the US market and on a US server, but live in UK (or the Cayman Islands? .....

If you are tax resident in the UK, you have to pay tax on your 'worldwide' income - so even if your website is hosted in the US, and your website earnings are not 'UK sourced income' you still have to pay.

However, if you are UK non resident - you only pay tax on UK source income - your website earnings will be tax free.

However, this will mean you have to leave the UK - and not spend more than 90 days per year there - or you become liable to UK tax.

Also, it is not enough just to become UK non resident - you can't just travel around the world aimlessly, staying out of the UK - you need to officially establish a tax residence in another country - obviously one with zero, or very low income tax on your 'foreign sourced income'

In Europe, Malta and Andorra both offer easy tax residence - if you can afford to buy a house there

8:48 am on July 25, 2003 (gmt 0)

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If It's malta (where I live) I can point you to the right sources ;)

SN

8:52 am on July 25, 2003 (gmt 0)

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I am waiting for the wonderful fragrance of my first google check

And that wonderful eau du Google fills the office this morning...

12:39 pm on July 25, 2003 (gmt 0)

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Yeah, just got mine today. Disappointed there is no Google logo on it, just doesn't feel quite so authentic, still as long as the money is authentic who cares ;)
12:43 pm on July 25, 2003 (gmt 0)

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From what day to what day does the check cover, if I may ask? Thanks.
12:58 pm on July 25, 2003 (gmt 0)

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Yeah, just got mine today. Disappointed there is no Google logo on it, just doesn't feel quite so authentic, still as long as the money is authentic who cares ;)
No Google logo! Arghhh, I so wanted to show off next month.

loanuniverse: Hey John, You know that search engine you are using right now.

John: Yeahhh, what about it?

loanuniverse: Remember my site? Check this out {loanuniverse pulls out check for $1,000,000 with Google logo and shows it to John} Hey! is my dream so the check is for a million instead of the minimum

John: I am not worthy to stand in your presence Master of commercial lending finance! Please allow me to work for you as your personal driver and gofer.

1:10 pm on July 25, 2003 (gmt 0)

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From what day to what day does the check cover

June 20th - June 30th

No Google logo! Arghhh, I so wanted to show off next month

Yeah, i was going to frame it and hang it on the wall, instead i think i'll just stick it in the bank.
3:55 pm on July 25, 2003 (gmt 0)

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If It's malta (where I live) I can point you to the right sources ;) ....

Killroy

If you don't mind me asking - are you a Maltese national, or did you move there to escape tax?

I'm thinking of joining you in the near future - once my income has reached a point where it makes it worthwhile.

It all seems very easy to do - anyone making their income off the internet, with freedom to base themselves in any country in the world, would be crazy not to in my opinion - it's only family connections that make me hesitate.

4:09 pm on July 25, 2003 (gmt 0)

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Ok, I'm in too! Do you think we could get a reduced airfare if we all book at the same time?

Let's all go to Malta! Let's all go to Malta! La, la, la, laah, etc, etc

6:40 pm on July 25, 2003 (gmt 0)

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Remember - before everyone gets Malta fever - US nationals are taxed on their wordwide income, wherever they live in the world - it's very difficult for them to escape the IRS by just leaving the USA and taking up residence in a foreign country.

There are only 4 countries in the world that taxes its citizens in this harsh way - the other 3 being Egypt, North Korea and the Phillipines

For non US citizens though - tax havens here we come :-)

11:31 pm on July 25, 2003 (gmt 0)

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Hi, I asked my accountant and she said IRS allows you to have up to 75,000 USD tax free income per year if you work in another country. I also confirmed this with a US friend working in HK whose income is around $60k USD. He doesn't have to pay US tax, and he still has to file income tax return.
9:27 am on July 26, 2003 (gmt 0)

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irock

That is perfectly true - I forgot about that tax free allowance. US citizens only get taxed on their income over and above $75,000, so you would certainly save a small amount of tax

Speaking personally, If I was a US citizen, I don't think I would be tempted to move offshore to save tax if my income was 60-70K - there are a lot of costs associated with moving to a foreign tax haven - you would need to buy and maintain a second property for starters.

You then have the major hassle of not being able to spend more than an average of 122 days in the USA - you would be spending a lot making short trips back home to see family etc

On balance, you probably wouldn't save more than 5-10K per year - quality of life and not being away from your family and friends is worth paying for I think

However, for non US citizens who don't have this restriction, we get to keep our entire income tax free by moving offshore - not just the first $75K - so if you are lucky enough to be making big money, you can save a massive amount.

10:15 am on July 26, 2003 (gmt 0)

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Hehe, when I was 16 I didn't really worry about the tax. Funny thing is, that once here you're worrying about saving the tax you pay here too (which is much lower then other places, but higher then, say lichtenstein).

Well if anybody is serious, I actually made a website once for a company doing relocation to Malta specifically. I'm not really affiliated with them anymore, but I can still point you to the right people.

Until then I'll just sit in the sun and go swimming for lunchtime... a much better reason to be here.

;)

SN

10:45 am on July 26, 2003 (gmt 0)

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>>Until then I'll just sit in the sun and go swimming for lunchtime...

Sounds like Cornwall, but without the taxes we pay in Cornwall.

The whole offshore question is a serious issue with the sums involved with AdSense. We all have to look at the tax questions involved. Though one suspects (expects) that governments will catch up with the whole tax question of Interent adevertising in the near future.

11:07 am on July 26, 2003 (gmt 0)

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How about setting up, or liasioning with companies abrouad that bill you for services rendered?

SN

3:55 pm on July 26, 2003 (gmt 0)

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Until then I'll just sit in the sun and go swimming for lunchtime... a much better reason to be here.

I am pleased to see such activities are not only reserved for Thailand!

For tax havens look no further than what most major insurance companies have done. Most have their headquarters in Bermuda but still operate from the states.

4:25 pm on July 26, 2003 (gmt 0)

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Hi Tiebreaker,

Hmm... that's true.. moving to another country to save a bit of moeny isn't very worth throwing your life away.

FYI, if you set up a limited company in HK and talk to a local accountant for special tax arrangement with Revenue HK (something like claiming your website revenue being generated offshore), you only have to pay 8% tax. You also don't have to worry about HK dollar value sliding because the central bank there fixes the exchange at 7.8 for 1 US dollar.

No tax expert here, but I heard this might work if you have relatives in HK who can do cheque deposit and maintain the company for you.

4:36 pm on July 26, 2003 (gmt 0)

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irock

I've spent some time studying the UK tax laws - and as far as I can tell, just forming an offshore company doesn't achieve anything tax wise - although it certainly has other benefits - this would be such an easy way to avoid tax, that it stands to reason that our inland revenue would want to close this particular loophole - everyone would do it!

Essentially, the Inland Revenue have a rule that says you are not allowed to incorporate offshore for the sole intention of avoiding tax (in other words, don't try and take the ###!)

The only way to avoid UK tax is to personally get out of the country - and don't return for more than 90 days per year

4:54 pm on July 26, 2003 (gmt 0)

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The idea is to have a company in lichtenstein which bills you for to "run" your website. your UK company ends up with low, near zero profits, under the minimum taxable margin.

Then your lichtenstein company normally declares it's income and pays taxes (which are xifed and independent of profits). You don't have to move at all.

SN

6:04 pm on July 26, 2003 (gmt 0)

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If any of you are planning to finance an expatriate lifestyle with AdSense, make sure you've bought insurance in the form of a return ticket. :-)
6:11 pm on July 26, 2003 (gmt 0)

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Then your lichtenstein company normally declares it's income and pays taxes (which are xifed and independent of profits). You don't have to move at all.

but you forget how YOU get your hands on the money... the moment you move it in from lichtenstein you'll have to pay the tax on it

7:45 am on July 27, 2003 (gmt 0)

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vince is correct here I think

It is fairly easy to avoid corporate income tax without moving abroad yourself - if you know what you are doing - but it doesn't achieve much, because to get your hands on the money, you then need to pay yourself an income from the corporation.

When you do this, the money is taxed just as any salary is, so you are back to square one.

I think the taxman would look at Killroys scenario and immediately see that it was set up with the sole intention of tax evasion and ban it - I assume Killroy has not actually tried to do this - since he lives in Malta, he has no reason to do it anyway.

As I said before, you have to personally get out of the country.

Think about this example of Mick Jagger - who can afford the smartest tax advice available.

Most of his income is 'foreign sourced' in the same way my internet income is - although on a much larger scale sadly!

However, he has spent all his life staying out of England to avoid tax - if it was simply a matter of forming a company in Lichtenstein called Mick Jagger Inc - I'm sure he would have done.

I can think of loads of high profile businessmen and pop stars who all live in the Bahamas and such places for this very reason - most of them happy to admit that they are sick to death of endless sunshine and pining for a bag of fish and chips in rainy old England - but they can't go back!

12:33 pm on July 27, 2003 (gmt 0)

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I believe the cyber world and real world are not analogous.

In the traditional scheme a company needed a presence to make a buck.....in the cyber scheme the buck is made...well who the heck knows where......it brings a whole new meaning to passing the buck...and a whole new set of problems to those that attempt to track that buck!

Personally I think Y'all should pay your taxes like the good citizens we all are ;)

6:23 pm on July 27, 2003 (gmt 0)

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percentages

I agree that it is pretty hard to determine exactly where the income is made - but the tax rules of most countries state that if you are non resident, you only pay tax on income with a source in that country - foreign source income is tax free.

Now it may be difficult to decide exactly where the income source is - the country your website is hosted maybe - wherever Adsense or CJ payments come from perhaps - but it is pretty certain in my case for example, that the income is not UK source.

OK, I am tapping on my keyboard in the UK - but if I move to Malta or some other place, even that slim connection is removed - so there is no question you are entitled to a tax free status.

You can pay tax if you like - but I have given the UK enough of my money to be wasted on asylum seekers and an NHS system that makes me wait 6 months for an appointment - first chance I get, I'm off!

8:12 am on July 28, 2003 (gmt 0)

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Hurm, OK, so the topic has drifted a bit, but I couldn't find a more appropriate one for my question <g>:

Are the AdSense checks made out to the "payee name" (a person), or to the business name?

8:20 am on July 28, 2003 (gmt 0)

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On the side, Adsense checks have reached much faster than any other ad networks would send :)

After having received my first check, I await the arrival of the second ;)

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