READ ME: What is your pre-tax net?

[Czar]

"When you receive an affiliate commission from an Australian entity the commission will be subject to GST. In practice for you it will most likely be impractical to request that you be paid an additional 10% to cover this GST liability.


"The cost of GST payable on such commissions is 1/11 of the consideration received."

Phil and Jan, the above doesn't mean that you need to pay GST where an Australian consumer purchased a product through one of your affiliate links. Rather, it means that where the affiliate program itself is managed by an Australian entity (such as Engage Australia, DStore or WishList), from whom you collect GST as part of your earnings, you must take account of this when filing your BAS (presuming that you are registered for GST). You can't pay GST to the ATO unless you've collected it first, after all.

When managing your own affiliate program, things will become more complicated (that's where Phil's nightmare scenario comes into play). While you're operating through a third-party who handles all of the transactions, and sends you a commission check, you are not providing a supply direct to the Aussie consumer, and thus are not liable to pay GST for that.

[alexk]

Originally posted by gallery
Woutah,

what happened ? Have you declared your earnings ?

I'm also from Belgium, and wanted to declare my revenue.

They did not even think it was possible to earn money from the net. They laughed at me and told me to not declare anything.

They do not even know what the internet is all about (even my parents do not know).

verry interesting... i was going to pay taxes for the year 2001 but after reading your and Woutah's posts I probably won't do...

btw, do you know what is the fine (or whatever) for not paying taxes in Belgium?

[demae]

I'm curious: Has anyone here purposely moved to a foreign country with lower taxes/costs of living, while earning a relatively large income from the internet?

[gallery]

Hi Alexk,

I see that there are a few people from Belgium in this forum

I've a day job too so I pay taxes (a lot )

The problem in Belgium (and maybe in other countries) is that all the people I have asked how to declare my internet earnings are completely useless (and that's their job !!)

Also, let's imagine that you have been able to declare your internet earnings.

How are they going to check that you have declared the right amount ? That's nearly impossible and I think they will be constantly after you.

[alexk]

I've a day job too so I pay taxes (a lot )

so do I, and it's 10-20 times more than I'm having from the internet... the 40% tax we have in Belgium is just way too much imo

[AhmedF]

A bit off topic.

Wouldnt it be losing, not loosing? =0

[JP Sauve]

Originally posted by demae
I'm curious: Has anyone here purposely moved to a foreign country with lower taxes/costs of living, while earning a relatively large income from the internet?

Not me, but like many people I dream of moving to a tax free country. I hear the Cayman Islands is tax free, but I don't know anything about it.

[AhmedF]

Saudi Arabia is tax free.

Getting in is the problem

[Vrindavan]

Can some Aus Webmasters let me know
if they have to report income source
earned outside Australia by law? e.g.
US Affiliate program income.

If you like, you can
reply to me @
vrindavan@onebox.com

Some countries do not tax citizen income derived
from foreign sources.
I do not have a list of such countries.

And I think many countries now
adopt international taxation,
no matter where the income derived from.

[Czar]

Can some Aus Webmasters let me know
if they have to report income source
earned outside Australia by law? e.g.
US Affiliate program income.

Yes, we do. You'll find some additional tips/thoughts about this earlier in the thread. (the most important being the need to consult with a tax agent or accountant regarding your particular circumstance)

[jemma]

I'm a little confused about what to add or subtract when I vote. We received a lump-sum payment this year for several months of last year's earnings. Because it was paid to us in this calendar year, the IRS considers it this years earnings. This would place me into net 4 figures.

If I exclude it, it places me around net $400-500. Our earnings are very seasonal though, so ordinarily there'd be reason for optimism. The holiday cards get a lot of traffic at end of the year, and the site has always done really well from October on.

Unfortunately, I no longer have any precisely targeted ads, so a big increase in traffic may no longer translate into a big increase in earnings. Also, things are not looking too good for my CJ account - my CJ ads seem to have gone into hibernation - hardly a peep of profit out of any of them.


Jemma

[consent]

I'd like to see another poll regarding (non-salaried) content sites only. Also, it would be nice if it were impossible for anyone to vote twice.

For those making almost $200,000 (projected) for 2001...please mention more details.

[ref]

jemma:

The rule is simple you deduct all you expenses that make sense to an accountant.

That include the depreciations of you computer(s) [three years in Canada], of you chair [you sit on it] everything that you consume [paper, glasses that you break when the server goes gown, lost of light because you work in basement, neighbour syndrome – you can not concentrate when they cut the grass and so on]. You will get something that will allow you a free tree on Christmas, some canned soup and everybody understanding. Somebody be with you.

[jemma]

ref wrote: [deduct]neighbour syndrome – you can not concentrate when they cut the grass and so on...

Now there's a deduction that could save me lots of money! I have neighbors who often disturb my work and tranquility (living in NYC also destroys my tranquility, but that's another story )

[trabaho]

Having low exchange rates make it worth while earning in dollars in south east Asia. I've made a lot but since I've moved back to Australia had to pay up a little, okay a lot!!