Is it necessary to declare PayPal income on the tax report?

[now_i_m_here]

Is it necessary to declare PayPal income on the tax report?

I mean, since it's intangible, does it count?

[pingpipe]

For a large amount of money or number of transactions definitely declare it as income, and any fees you had to pay declare as expenses.

[bimbaso]

About what country you are talking about? Bassicly if the money is in your paypal account, you dont have to declare anything.

[pingpipe]

In the US, for instance, hiding money in PayPal to avoid taxes is looked at as tax evasion, and illegal. Google "paypal tax reporting", it's not worth getting caught.

[redirection]

whathappens if i dont decelare it. and im not sure if its neccessaryfor us here in asia

[pingpipe]

the laws are different in each country. If there's alot of money involved it'd be worth your time to check with a local accountant.

[ELCaD]

This will depend on your country laws as well as the reason the money was sent.
You should check with the local tax office to get a definitive answer.

[davehivelocity]

I have never really thought about that. Never have I thought about the use of paypal and govt taxes. Great thinking

[Jerlene]

Under the legislation, PayPal will be required to report to the IRS the total payment volume received by PayPal customers in the U.S. who:

1. receive more than $20,000 in payment volume in a single year; and
2. receive more than 200 payments in a single year.

This legislation applies to all payment providers including PayPal and takes effect in 2011, so the first reports will go to the IRS in January 2012.

[multipass]

I never thought of that though. Very interesting if you have to consider this.