Taxes for Online Workers
June 21, 2012 2:46am CST
I have been on and off on my online job lately due to the fact that presently, my permanent job requires extra concentration because I am undergoing series of training as required by our department. But I know some of you my dear myLot friends have been around for years. So I would like to ask your opinion regarding this matter. Do online workers like us also pay taxes for this particular job? Please do share your experience and opinion.
• Legaspi, Philippines
22 Jul 12
I am just preparing for future use jvincent. There is a full policy in our country that would require all government official and employees to submit Statement of Assets and Liabilities. Who knows I became a millionaire on this field? And they would know I am not paying any taxes when in fact I have to.
28 Jul 12
Hi, there! Section 24(A)(1) of the National Internal Revenue Code (Tax Code) of the Philippines provides that income tax is imposed on income derived for each taxable year from all sources within and without the Philippines. That means it includes online income. However, the tax authorities have little resource to detect who earns online income, unless such person earning the online income voluntarily declares it.
• Cambridge, England
21 Jun 12
It is up to you what you do, of course, but technically, wherever you live in the world, ALL income is potentially liable for tax. Most online payments are made under a 'freelance' or 'self-employed' arrangement and YOU are responsible for declaring your earnings to the relevant tax authorities. It depends very much on how assiduous your tax authorities are, but NEVER assume that they could not, at some time, claim tax on what you earn online. It is always wise to keep records of what you have earned, regardless of whether you declare it or not, just in case your tax office comes round asking awkward questions.