AdSense and taxes for non US webmasters

Does Google report it to your local country?

[qwer]

Just curious,
Does somebody know, if Google reports your income to the tax authorities in your local country, if there is an income treaty between the USA and your country?

When signing for the program, I submitted the form that I had no US activities, and in their FAQ page they say, that no tax form is needed if you are a webmaster which has no activities in the USA.

When signing with CJ, I had to submit a W8BEN, in which instructions it says that the IRS will inform the tax authorities in my country about the income, but Google is different, as I was not oblied to submit any tax form.

[fischermx]

Which country are you?

[Freedom]

Depending on your banking procedures and laws, your govt might find out through your bank that cashes the check. Talk to your banker to find out more on the standard operating procedure on this.

[dreamlord]

How would your govt find out?
Only if google or your bank informs the govt...
I think your bank only has to do this in cases the money comes from criminal activities...

[Mauricio]

In most countries, the banks must notify foreign operations from a certain quentity. In Europe the number is around 5,000/10.000 euros (i.e. Spain: 6.000 euros).

[dreamlord]

5,000/10.000 euros?

In what time span?

Or is this per transaction?

[jomaxx]

These are really questions that should be posed to a crooked accountant. You shouldn't be relying on random and speculative musings in an online forum.

[stuartmcdonald]

I very much doubt Google is reporting earnings to various foreign tax offices -- more likely as has already been mentioned you may be tripped up by large financial transactions - 10K is a common limit above which the bank has to report it to some nefarious governmental agency or another.

[dreamlord]

Crooked accounts are costing money...
I know most people donīt pay taxes on their adsense
earnings...
Because they donīt know how to pay taxes on it...
or because they donīt like to pay taxes on it...
If youīre not earning alot the government would not mind...
If you are not earning the big money thereīs no problem....
Do you really think they know you got $150 from google last month?
Anyway...Itīs your own responsibility to inform the government of your adsense earnings so they can tax it...

[qwer]

Thank you for your replies.
I am from Spain and my situation is the following:
I pay 200US$ on AdWords and recieve around 400US$ from AdSense (and a bit from affiliate programs) each month. If I go and report my taxes I will have to become an "Autonomo" (Independent worker) and pay 150EUR (200US$) each month to the Social Security independently from what I earn!
And all what I am doing would be completely useless.

[stef25]

you can open a swiss bank account online ... would that be a solution?

[dreamlord]

Can you use a bank account in another country with google?

[stef25]

i dont get paid by google, but dont they send out cheques? in that case you just send the cheque to your bank in country x; no trace in your home country

[qwer]

"in that case you just send the cheque to your bank in country x; no trace in your home country" unless Google reports it to your local tax authorities.
Do they do it?...

[fischermx]

That's a long history.
It depends on your country. Sometimes the USA have treaties with some countries to avoid double taxation on income :
[intltaxlaw.com...]

In this cases the countries share information, but I don't think that's at enterprise level, but at government level. So, it's not Google, but the US government who may inform your country taxes authorities about your income.

In those countries to which there's no treaties, I guess the US would have to either tax your income directly, or if you claim exception, then, I guess, it is your responsability to report your income to your country taxes authority.

I think you may want to ask the opinion from another webmasters from Spain.

[fischermx]

This is the place to go :

[irs.gov...]

You'll find the US-Spain treaty there.

[dreamlord]

Those treaties mean that you donīt have to pay taxes in the USA but that you have to pay them in your native country...
Remains the question : Is the US governement informing other countryīs tax authorities of your adsense earnings...
I donīt think they are doing it on an individual base...
But...Iīm not sure...

[stef25]

id say that you dont have to stress if it concerns a small hobby site;

no way they are going to go through that much trouble over a few 100€/month

[dreamlord]

"The exchange of information shall be either on a routine basis or on request with reference to
particular cases. The competent authorities of the Contracting States may agree on the list of information which shall be furnished on a routine basis."

On a routine basis...haha...I hope everyone paid there taxes?!

[qwer]

So, it is the US government who will have to inform the spanish tax authorities about it.
The question is: does Google inform the US government about your income, if you have signed the form that you don't have activities in the USA?

I am a student and about 200US$ (150EUR) each month is a relatively good income (only spending a few hours a month), as students here tend to get about 3 euros per hour of work, which means that it is 50 hours work per month (like working all the weekends -8 hours saturdays and 4 hours sundays-).
I will really don't give it up!

[fischermx]

So, it is the US government who will have to inform the spanish tax authorities about it.
The question is: does Google inform the US government about your income, if you have signed the form that you don't have activities in the USA?

I don't doubt it. But the thing is really about the amount of money we're talking about.
For some countries, I know the US goverment gives to the foreign government a list of foreign country residents who have Bank accounts in the US.
I know people who have a couple thousands and have never been disturbed by the foreign country IRS.
I also know, not directly, people with hundred thousands in investments in the US and they do are required by the foreign country law.

No goverment will care about such small fishes.
Even in bussiness, small receivables hard to get paid are discarded as irrecoverables.

[dreamlord]

So....What are safe monthly earnings...?

Funny...Some people might want to bring down their
CTR....:)