online income is taxable or not
By idea24share
@idea24share (439)
India
July 21, 2012 9:38am CST
If we are earning money through online for Ex: Every month $10 or upto $50 and transfer the money from paypal to our bank a/c should we file it as a taxable income or we need not file it.
I need the information for both working and not working persons.If Working person file the income what they are earning through regular income and did not file the online income is it safe or it should also to be filed.
Is our bank tells about the transaction to income tax department?
Please anybody know the answer share your thoughts.
2 people like this
5 responses
@Graceekwenx (3160)
• Philippines
21 Jul 12
Dear Idea. If you are a registered business owner and that you have applied with your local Bureau of Internal Revenue, then yes... online income is taxable.
@idea24share (439)
• India
22 Jul 12
I am not business owner and i am only earning a little from online as income.But i don't know if it is taxable or not.Thanks for your comments.
@Graceekwenx (3160)
• Philippines
22 Jul 12
Ok.. is this a sideline... does the site that you are working with files taxes? Because if they are, you dont have to remit tax payments, your online employer would do that for you.
@usemyname (640)
• Philippines
21 Jul 12
I've been meaning to ask this very question for a long time now. It's just that every time I check up on mylot, I just forget to post it or mylot is undergoing maintenance (talk about bad luck).
I believe here in our country if your annual income is around $500, you have to declare it on your taxes.
I'm not sure about the thing the bank telling the tax department. But, when I opened an account with my bank, they asked for my tax identification number(TIN). SO, there's a possibility that they will.
@Graceekwenx (3160)
• Philippines
21 Jul 12
Sorry to butt in... If your online income is just a sideline and you did not file a COR with the BIR, then you are free to go! But but but... BIR is slowly peeking into the websites to check if these sites are registered, if not... then the admin of the site would have to get ready for some charges. Business is always taxable...
@AgentGulaman (3546)
• Philippines
21 Jul 12
I think that coming from the Philippine side, there are no clear laws or amendments in online earning taxation yet. However, in the foreseeable future, the BIR will try to incorporate taxation for E-commerce earnings, but they have yet to finalize a way to do so. I don't know the progress of the law yet, but that is the latest that I know.
@Graceekwenx (3160)
• Philippines
22 Jul 12
You are so right in there AgentGulaman. BIR is finding other means on how to earn income. I dont really mind if they do so.. i just hope that our taxes goes to the right places.
@suspenseful (40192)
• Canada
21 Jul 12
I have no idea how things work with online income here in Canada. I suppose if the company is registered in Canada, then they would have a tax number, but if the company is registered in America or some place like China, it becomes a bit difficult. They say where that you have to declare all your income, and I suppose it also refers to if you pick up a penny from the street. But that makes it a bit time consuming. The bank is not telling the income tax of our transactions. I asked. They will report interest if it is over $10 though.
@idea24share (439)
• India
22 Jul 12
Thanks for your comments. Interest means you are telling the savings bank a/c with $10 as interest per month or per year.
@scheng1 (24649)
• Singapore
21 Jul 12
Hi Idea, that depends on your country.
if you are declaring it as freelance income, you can deduct certain expenses, such as the cost of a new computer to offset the effect of the income.
You have to declare if the country taxation law requires it.
Over here in Singapore, most of us are not making enough to pay income tax.
The income tax threshold is $22,000 per year.
If we are making lower than that, after deduction of compulsory provident fund contribution, and other charity donations, we do not need to pay income tax.
Since online income is too little, I do not report it.
@idea24share (439)
• India
22 Jul 12
Great country. In india we have to file tax if our income over Rs.180000 per year.But in your country upto 11,00,000 you need not pay tax.Great.
@pnrsensecs (313)
• India
21 Jul 12
By seeing your profile pic ,I think you are from India.1 dollar 55 rupees.That means even if you are with drawing 50$,it wont exceed 3000INR.No need to pay tax for 12000 rupees per month.Every transaction will be noted in bank details.So dont worry we are not making lacks here.We are making only our internet provider charges.
@idea24share (439)
• India
22 Jul 12
Thanks for good suggestion.So upto 12000 per month there is no need for tax file. fine.
