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| Thread ID: 67036 | 2006-03-15 01:27:00 | google adsense | lance4k (4644) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 438188 | 2006-03-15 01:27:00 | It doesn't cost anything to setup-up and per month to have google adsense on a website does it? U don't have to pay tax if u live in NZ but ur web server is hosted in the usa right?(i think that's what it says on its website) ALso do u have to pay tax and gst in NZ if adsense is on a personal website that has a forum and articles for FREE? | lance4k (4644) | ||
| 438189 | 2006-03-15 02:03:00 | Free to set up Doesn't cost anything Technically you DO have to declare it for tax as it is income. - in reality if you think of the check as being in NZ dollars and not US dollars then the difference is what you pay in tax. Unfortunatly according to the IR you can't claim the tax back against expenses unless your site gets out of the 'hobby' range of income and into the 'business' range. |
netchicken (4843) | ||
| 438190 | 2006-03-15 07:59:00 | It doesn't cost anything to be an AdSense publisher. U don't have to pay tax if u live in NZ but ur web server is hosted in the usa right?Yes, you do have to pay New Zealand taxes on all income, including online income (server location is generally irrelevant). |
maccrazy (6741) | ||
| 438191 | 2006-03-15 11:08:00 | It's not about where your server is based, it's where you are resident- if you are considering going into business then you should consider either contacting the IRD or a tax agent/ accountant. | Sick Puppy (6959) | ||
| 438192 | 2007-12-11 03:13:00 | (Sorry to bump up this thread if you don't like the dead being revived) I am just wondering, how does IRD know whether you are earning money via Google Adsense as a form of income if you don't declare it? If say, I earn $100 bucks per month but I treat it as a monthly stipend, where's the borderline between income and "occasional money reward"? Cheers :) |
Renmoo (66) | ||
| 438193 | 2007-12-12 01:06:00 | Good question. I can't be bothered reading the tax acts but the general gist is that if you undertake a business activity then any profits are taxable. A business activity is defined as something that is done with the intention of making money. This was tested through the courts and a hobby, per se, is not taxable - a case that comes to mind was a deer hunter who regularly went deer hunting as a hobby and would sometimes sell some of the parts from the deer he killed for cash. The IRD tried to claim it was a business and therefore taxable, but they lost when the courts ruled the activity was a hobby and the intention was not to make money. If the hobby grows into a business then yes the profits are taxable. If the intention of your hobby is to make money then it is taxable. So it actually comes down to your intentions. How does the IRD know? Trust me - they do! But seriously, they have ways and means of catching tax cheats, which I won't go into here. In the case of AdSense, IMO if the intention is to run a hobby website which is not part of a business and does not undertake a business activity, and AdSense is used merely to defray some of the costs incurred in maintaining the website, then I would say the proceeds are not taxable. If however, the income from AdSense exceeded the costs by some margin on a regular basis, then I would say it is taxable. So there you go - a bob each way! Cheers Andrew |
andrew93 (249) | ||
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