What type of tax do i have to pay with online income from paypal. I am from Australia -ato.gov.au?

Hi everyone,


I want to know what type of tax I would have to pay from the money I earn on paypal which I then transfer to my Australian bank account- I am an Australian resident and live in Australia. Does paypal tax my account or do i have to do it? How would I resolve this tax issue that i must do!





Thanks everyone!
What type of tax do i have to pay with online income from paypal. I am from Australia -ato.gov.au?
You didn't say how you are earning money via Paypal. I'll assume you are selling goods as a sole proprietor. Paypal is just an online bank account, in simple terms. You are not earning money from Paypal just as you are not earning money from your bank account when you withdraw the wages that your employer deposits into your bank account. Paypal is not your employer and is not required to withhold tax from your sale proceeds.





What you need to declare:


The total sales - i.e., the amounts that the customers pay to buy your goods - are your business income. You'll declare that income in the Income From Business section of your annual individual tax return. You can claim as an expense to offset against that income the commissions and charges that Paypal charge you. Your Net Income From Business (after expenses) is included in your taxable income and is taxable in your individual return as per the current general rates for individuals.





When you need to declare it:


Under tax law, you derive your income when it is applied on your behalf. For example, if a customer pays you via Paypal on 30 June 2008 but you don't withdraw your money from Paypal until 1 July 2008, you declare the income in the 2008 tax year because that's when you were paid.





Paypal is just another kind of bank account that you withdraw your money from. Just because you don't withdraw your income from the bank doesn't mean that your income is not yet taxable. It became taxable anyway when someone paid you by putting the money into your Paypal account.





You might need a tax accountant to show you how to prepare your tax return.





Edit -


Sale of digital goods, know-how IP, tangible or intangible, whatever - it's the same answer, and it makes no difference where your customers are located because Australian residents for tax purposes are assessed on their worldwide income and export business sales.





Edit-


Minors (under 18) are taxable at the ordinary tax rates on this sort of income:


http://www.ato.gov.au/individuals/conten...
Reply:Miss schlonky is spot on with this question - no need to add to this.
Reply:It depends what type of income it is. If it is substantal than yes . You add that income to your other income and are taxed on it regardless of what country it is from, but if it is not your main source of income and just a hobby then no. There are special rulings for home based businesses which i assume yours is.


Carrying on a business at or from your home is a guide that the tax office has this guide has been written specifically for people who choose to carry on a business at or from their home. It explains the main tax issues you need to be aware of if you are carrying on a home-based business.





The tax office uses examples of four businesses throughout the guide to show the different ways people can operate a home-based business, and the tax implications.


Below is a link to the Australian Taxation Office's ''Carrying on a business at or from your home'' page.





http://www.ato.gov.au/businesses/content... this will give you the best information.