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I am planning to start a new Website and have adsense on it. I live in Argentina and I would like the site to be hosted in the US on a go daddy regular hosting service.
My question is, does that constitute as US activity? Do I have to pay taxes in the US for the revenue I get from the adsense?
I ask because I live in Argentina, I am not American and before doing this I need to make what my situation is.
any help is highly appreciated
The fact that you are hosting the site on a US server doesn't have tax implications. However you will be subject to US laws for your site like DMCA etc.
Taxes between two countries depends mostly on a tax treaty between said countries. Most of them are designed to avoid having to pay taxes in both countries (double taxation), but nearly all of them are slightly different, and most of them will predate the Internet and Adsense, so guessing how to apply it is tricky, even very tricky.
Many variables enter into the mix, e.g. your status back home might play an important part (individual, self-employed, business, ...) and even just mapping such local terms to the treaty terminology can be a challenge in its own right.
If you want to dig in on this, the IRS lists the treaties here:
Argentina isn't listed in that list of the IRS, but Argentina is -AFAIK- part of the Free Trade Area of the Americas (FTAA).
Bottom line: try to find some local expert on foreign income and taxation -if it's anywhere like where I live: it's pretty hard to find true knowledgeable help.
AFAIK, If you fill out the tax info on Adsense and claim "no US activity", Google does no withholding of taxes on your income ... Which doesn't mean you don't need to declare it locally.
I lived in Argentina (Im from South America).
If you rent a webhosting in the US, and you are from Argentina, you dont have to pay taxes to the US.
Google will then can pay you thru Western Union Quick Cash or send you a check by mail.
It is your obligation to pay taxes locally. But Google won't insist or check this requeriment.
If someone thinks that revenue generated from US advertisers targeting US consumers for goods and/or services performed and/or delivered within the US is not considered such a loophole, then they haven't "read" The Manifesto. ;)
If someone thinks that revenue generated from US advertisers targeting US consumers for goods and/or services performed and/or delivered within the US
You assume a lot, but if it truly is the case and the OP targets US traffic, there's still a player in that cycle taking a big cut, Google, who pays US taxes to that revenue generated by a foreigner. Should Google pay taxes to other countries when the advertisers, the publishers and consumers aren't american?