Tax laws differ from country to country and in the United States, they even differ from state to state but unless you live in a country where people are not required to pay income tax (that must be heaven?!), your income from blogging and internet activities is generally taxable.
No, this is too early for the April Fool’s Day and ghost stories are usually more interesting on Halloweens. Since ignorance of the law excuses no one, you better check the taxation rules in your country because generally, all income realized from whatever source is considered a taxable income.
You’re bound to declare all your income from blogging and other internet activities in your income tax statement.
Unless you can specifically point out a specific law in your country that makes your income from blogging and other internet business and activities as a tax exempt income, you’re bound to declare all your income from internet activities in your income tax statement preparation. That’s how laws are interpreted. Laws or rules are applicable to all except when exemptions are expressly set forth in another law or in some provisions of the law itself.
Affiliate Commissions Are Taxable
Earning affiliate commissions? Don’t think that just because you earned it online makes it invisible in IRS or tax authorities’ eyes. The reason why most affiliate companies based in the US require you to fill up form W-9 if you’re a US person and the Certificate of No United States Activities and the W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Withholding if you’re non-US person is that they are required to report those income you had earned to IRS.
Paid Posts
Most paid post writing sites also require you to give information about your TIN prior to payment because they are required to submit reports to tax authorities. Some companies ask you for that info after you reach a certain level of income but regardless of your income, you will still be included in their reports. Your online income is not totally “traceless”.
Other Income
Advertising revenues from ads slots on your blog and even those you earn from clicking in PPC sites are also taxable. If you’re lucky, some offshore PPC sites don’t report their revenue generating activities but if you leave an audit trail on your site (like a blog post about all the income you earned online), it might be used during a tax investigation.
They say that two things are certain in this life: death and taxes. It’s sad to know that even in blogging, it’s applicable.
Here in the Phils, I haven’t encountered yet any taxable online opps except for the ones I do for a local employer for my sideline jobs. They deduct 2% from my total earnings for BIR purposes “daw”. I gave them my TIN and crossed my fingers. That’s the first and last time I gave out my info. Lucky me they are legit..
I hope the time will not come when blogging becomes taxable here and like in other countries. Pinoys will rally because for a few dollars to be taxable, it is just outrageous!
Hi sis, the NIRC is clear on this:
Except when otherwise provided in this title (NIRC), gross income means all income derived from whatever source, including (but not limited to) the following items:
(1) Compensation for services in whatever form paid, including, but not limited to fees, salaries, wages, commissions, and similar items;
(2) Gross income derived from the conduct of trade or business or the exercise of a profession;
(3) Gains derived from dealings in property;
(4) Interests;
(5) Rents;
(6) Royalties;
(7) Dividends;
(8) Annuities;
(9) Prizes and winnings;
(10) Pensions; and
(11) Partner’s distributive share from the net income of the general professional partnership.
I’ve checked the exempted transactions and nothing pertains to blogging.
The deduction made by your employer is called withholding tax and businesses are required to submit a report on those on a monthly (monthly, quarterly, annual) basis. They are required to furnish you with form 2316 or 2307, whichever is applicable to your case, because you will be needing this to support the tax credits that you will need to report in your ITR come April.
what??? taxable??? let’s pray malaysia gov not that smart yet..
smart enough to find a way to track online income of bloggers? LOL! it’s really hard to trace them considering that most bloggers don’t really expose their real identities online but posting your income online might catch their attention. discretion is the key, i guess.
ohmy? i never know about this. :/
i’ve read some articles and the same is true for malaysia caroline. i just don’t know if they’re strict in implementing their tax laws or how thorough their investigation are.
I just do blogging for fun and off course it’ll be good if a can make a little money from it. Still, it’s a bummer if that little amount is taxed.
if the site you’re doing “business” with requires you to fill up some tax forms, I guess you need to declare those “little amount” unless an exemption is provided in your tax laws.
i don’t encounter it yet and hopefully i will not 🙂
it’s actually required in the Phils sis, it’s just that anyone can easily get away with it (tax evasion) because kulang ang resources ng BIR. just be discreet. 🙂
wag naman sana sis dito sa Pinas.. hehehe…
meron din sa pinas sis. kaya lang hindi nga nila mahabol-habol ung malalaking tax evaders, un pa kayang kakarampot na kinikita sa blogging. if you’re patriotic, siguro you’ll really declare those income.
i just wrote about this post because I am now required to declare my income coz hubby and I are jointly filing are income taxes here especially since nirequire na rin ako to submit w-9 forms. i just keep all our internet bills to declare them as expenses. nakakatakot maging tax evader dito eh. kung pinas lang sana ito. tsk tsk.
Good for me, I live in a country where tax is not collected and OFWs are exempt from paying income tax, right? The government is earning anyway from the remittances…
i don’t know what you meant by “tax is not collected” (hehe) but I know that OFWs registered with POEA are exempt from paying taxes on income that are earned abroad. income from the Philippines are still taxable.
What I meant was … the government is not collecting taxes from the Income earned here in the Middle East country we reside in.
well, US sure thing they tax our blogging income. haaay thats life. Nalilito ako may tax na rin ba sa pinas? huwag naman sana kunting kita lng babayaran pa
That is so true, over here in the states, everything is taxable wahhh.. Lucky are those who live in our country kasi di naman masydong mahigpit BIR satin..
I don’t really earn much from blogging, just small change so I won’t worry about it for now 🙂
hi there. i also received today a message from PayU, it was about taxes too. it stated there that if a blogger earned $600 and above for the year, he has to accomplish a tax form and pay. sooner or later, BIR will have resources to trace bloggers who are earning and will eventually collect revenues. but that would probably take years before it will be materialized… hehehe… happy to be here…always keeping me informed…
thanks for the info sis though I’m not residing in US. mas maganda na ding malaman namin just incase makapunta sa us.. I really do hope na wag muna malaman ng BIR about blogging income, lagot kami nun. 🙁