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The Taxman Cometh!

Non US - Do you declare?

   
12:03 am on Dec 3, 2005 (gmt 0)

5+ Year Member



I started AS in 2005 so it hasn't been an issue yet but it will soon enough. My question is who declares what when it comes to the taxman? Canadian responses would be appreciated but others will be equally interesting. Please state what country your in.
12:14 am on Dec 3, 2005 (gmt 0)

5+ Year Member



I'm in the UK, so most of this is probably no help to you, but I do my own tax-return twice yearly, declaring it as income earnt through a hobby, still 40% tax however :(
12:20 am on Dec 3, 2005 (gmt 0)

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Adsense income is earned income in Canada. Not declaring it is tax fraud. In Canada you must delcare World Income.
12:27 am on Dec 3, 2005 (gmt 0)

WebmasterWorld Administrator buckworks is a WebmasterWorld Top Contributor of All Time 10+ Year Member



Be sure you keep good records of whatever costs you incurred to earn your Adsense income. A wide variety of expenses would be accepted as legitimate deductions against the income as long as you have them well documented.
1:07 am on Dec 3, 2005 (gmt 0)



From Canada

Declared it as income. It needs to be converted to Canadian dollars, which is the sum you pay taxes on. The government will publish the "rate" for conversion which tends to be an average through the year. You can use that and declare the income as U.S. income. Or you PROBABLY can convert it and state it as Canadian (I'm not sure as that's not how we do it on the current rate you actually receive when you cash and convert your cheque each month.

Lest you be thinkin you can get away with not declaring the income, you should know that the U.S., and Canada do have tax related information exchanges.

I don't do my own taxes. Since tax prep. is deductable, it's worth having some who knows what they are doing, do it.

1:21 am on Dec 3, 2005 (gmt 0)

5+ Year Member



I wasn't suggesting that I wouldn't declare it. It is tempting but I was really wanting to see what other people are doing. AS is just a drop in the bucket for now so it's no big deal to declare a few extra $$$$ that my accountant is very gifted at reducing.

But I am curious of what people are doing when $$$$ becomes $$$,$$$ is there an advantage to opening up a corp or account in US or other countries to avoid taking the big tax hit?

Anybody want to share their little tricks?

3:00 am on Dec 3, 2005 (gmt 0)

10+ Year Member



All my online income goes into my Ontario registered company, from which I wrote off all my related expenses, then I pay myself as employee and deduct taxes accordinaly.
5:38 am on Dec 3, 2005 (gmt 0)

WebmasterWorld Senior Member jetteroheller is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month



My question is who declares what when it comes to the taxman

I am from Austria Europe and it's declared as income from non EU contries.

5:55 am on Dec 3, 2005 (gmt 0)

WebmasterWorld Senior Member 5+ Year Member



income from non EU countries.

i'm form germany and my meeting with a tax advisor will be about to happen yet this year or at the beginning of next year. could you please tell me what are the implications for non eu countries income tax-wise?

6:08 am on Dec 3, 2005 (gmt 0)

WebmasterWorld Senior Member jetteroheller is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month



non eu countries income tax-wise

This is only for the VAT declaration.
On the Austrian VAT form, You declare all Your turnover.

From this total turnover, You declare
turnover with non EU countries
turnover with EU contries with UID, VAT free bills
in Austria 20% VAT
in Austria 10% VAT

So all Your AdSense remains income.
But there are also much expenses for AdSense.

7:01 am on Dec 3, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I am from India

and yes i do declare as well as plan the taxation along with finacial advisor (CA or CPA you call in US). This is must.I do pay income tax on it.

1:51 pm on Dec 3, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I manage my publishing empire from 15% of my house.

I just got the outside and inside of house painted ($10K) and Adsense paid for 15% (before tax money).

Without the expense writeoff that $1500 would have cost me $2025.

So, if you manage your website from your house and haven't already dedicated a bedroom to your business you might want to consider it - lots of writeoffs.

from USA

3:17 pm on Dec 3, 2005 (gmt 0)

5+ Year Member



Anyone from Belgium?
How to declare tax on adsense earnings?
3:33 pm on Dec 3, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I am from Austria Europe and it's declared as income from non EU contries.

Also in Austria and fresh from a meeting with my tax advisor. His take on the matter:

1) Obviously this is taxable as income (and Adsense-related expenses are valid for deductions) in the normal way
2) Adsense publishers are NOT liable for Ust. (VAT for Brits) as it is an advertising service performed for a company outside the EU and, more specifically, outside the country. The only time that this would be relevant would be if your services were contracted by your local country-based search engine, or a local subsidiary of an international engine.

ann

4:38 pm on Dec 3, 2005 (gmt 0)

WebmasterWorld Senior Member ann is a WebmasterWorld Top Contributor of All Time 10+ Year Member



Question for US earners.

Is advertising income classed as passive or actively earned income?

Passive (not subject to SS Employment tax) or actively earned, (subject to SS Employment tax).

10:50 pm on Dec 3, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I'm in the UK. I've put the income under my wife's name as she is currently not working and has unused tax allowances. She's lumped the income from my websites with her Ebay sales and called it her business for the purposes of declaring tax. Because she says she's self employed, she can offset various things against tax such as web hosting, office equipment etc.
11:03 pm on Dec 3, 2005 (gmt 0)

WebmasterWorld Senior Member vincevincevince is a WebmasterWorld Top Contributor of All Time 10+ Year Member



Online income goes into a UK registered company, from which I write-off business expenses, then I pay myself as employee and deduct taxes accordinaly.
11:18 pm on Dec 3, 2005 (gmt 0)

10+ Year Member



(In the UK), I have, like some, an offline fulltime job - and have declared myself "self-employed" with the Tax Office for Google Adsense earnings.

Having not filled in a self cert tax form beofre, what kind of "things" can I claim back? Software purchased? Monitor purchased? New domains etc - and why "evidence" of purchase and for business use is needed?

Thanks

12:54 pm on Dec 4, 2005 (gmt 0)

10+ Year Member



Don't mess about with Revenue Canada (or whatever they're calling themselves today). If you've never had an audit that status might soon change - they've been very active lately trying to squeeze out those taxation pennies. And while they might not seem as outwardly scary as the IRS, they're every bit as thorough and annoying! :-)
1:44 pm on Dec 4, 2005 (gmt 0)

10+ Year Member



Online income goes into a UK registered company, from which I write-off business expenses, then I pay myself as employee and deduct taxes accordinaly.

At what level of income (or expenses) does it become worthwhile to do this?

3:56 pm on Dec 4, 2005 (gmt 0)

WebmasterWorld Senior Member vincevincevince is a WebmasterWorld Top Contributor of All Time 10+ Year Member



Pedant,

I'm not certain of the exact comparison, but if you had no expenses, then I believe it would be approximately the same. Remember as a Ltd UK company you would need to file annual returns (small fee) and annual accounts (slightly larger fee) each year.

Companies are taxed differently but have a really big allowance before you start paying tax, and if you are paying the majority of your profit as either earnings or expenses, then you shouldn't have to pay tax on the company's earnings.

I understand, but you should do your own checking, that if you declare as self employed, you can only deduct related expenses, e.g. domain names, whilst as a company, you can deduct even unrelated expenses, so long as they are incurred by the company in undertaking company business. e.g. buying domains you didn't use, expenses for new projects which are not yet launched / taking income, travel from your main place of work to another place for business, etc. etc.

Personally, having a company bank account and dealing with it all seperately helps to divide work and personal income, enables you to know exactly how well your company is doing (without profits and losses being blurred by your personal spending or subsidised by your personal savings).

3:59 pm on Dec 4, 2005 (gmt 0)

WebmasterWorld Senior Member jetteroheller is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month



Having not filled in a self cert tax form beofre, what kind of "things" can I claim back? Software purchased? Monitor purchased? New domains etc - and why "evidence" of purchase and for business use is needed?

100% of hosting, domain names and my own internet connection
100% of my computer equipment, digital camera
100% of parking fees and toll for business travels
100% of my wifes pay, she translates my sites to English
30% of operating expenses from my apartment
80% of telephone bills are declared business
90% of all of my car expenses are declared business related, I have a notice book for all km and travel destinations
Travel expenses by fixed rates. This mean when I am on a fair in Germany to write about it, I can book according to Austrian IRS
35,70 EUR per day
27,90 EUR per night
Very nice, when I sleep actual in my car and have no real expenses.

Last summer, I was with my wife 3 days on a fair. In the evening, we had been on a camping place and swiming in a near lake.

2 years before my ad sense time, I had 2002 my first tax audit without any major problem.

I hope the ad channels of my last family vacation develop good, so I can justify all the expenses. I think as long as I can gain my travel expenses within several years, they have to recognice the expenses.

BTW, a press card is a real money safer
All fairs for free
Most times at faris no parking fee
Mobile phone with special tarif
Entrance in an amusement park for half the money