# Receiving income via paypal from overseas - do I need to pay tax while on SRRV



## sbrbkk (Jun 13, 2018)

Hi All, 

I'm on the SRRV, I do understand income from overseas isnt taxed, however I'm wondering if I open a paypal account thats linked to my Philippines bank account, do I have to pay tax on it? I do some part time consulting online w overseas clients, not a whole lot of money, just want to make sure I wont be doing anything ilegal.

Since 'Paypal Philippines' would be the one making the deposit to my bank account, I'm afraid that would be taxable?

Thanks


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## Asian Spirit (Mar 1, 2010)

sbrbkk said:


> Hi All,
> 
> I'm on the SRRV, I do understand income from overseas isnt taxed, however I'm wondering if I open a paypal account thats linked to my Philippines bank account, do I have to pay tax on it? I do some part time consulting online w overseas clients, not a whole lot of money, just want to make sure I wont be doing anything ilegal.
> 
> ...


Howdy and welcome to the forum. That's a very good question indeed. I'm assuming you are from the States? Please be sure to indicate in your profile your country of origin and where you are or have moved too -The Philippines presumably.

Unless someone has more information tha I do it might pay to contact a tax attorney back home to get solid answers.

Best Of Luck
Asian Spirit


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## JRB__NW (Apr 8, 2015)

Tax to what country? Where are you from? If you are a US citizen you will be required to report it, don't know about other countries.


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## Manitoba (Jun 25, 2014)

Since you can show that the source of the funds is overseas employment it should not be taxable here, It might be in your home country, It will be if you are American.


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## sbrbkk (Jun 13, 2018)

Im from Brazil, which wont tax me as Im living overseas. So no question to be paid to Philippines even if Paypal Philippines is the actual depository to my bank account? 





Asian Spirit said:


> Howdy and welcome to the forum. That's a very good question indeed. I'm assuming you are from the States? Please be sure to indicate in your profile your country of origin and where you are or have moved too -The Philippines presumably.
> 
> Unless someone has more information tha I do it might pay to contact a tax attorney back home to get solid answers.
> 
> ...


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## mogo51 (Jun 11, 2011)

I would have thought there are better means to send money to Philippines than PayPal? I wonder why you chose this method?
Welcome to the Forum and enjoy your stay here.


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## Manitoba (Jun 25, 2014)

mogo51 said:


> I would have thought there are better means to send money to Philippines than PayPal? I wonder why you chose this method?
> Welcome to the Forum and enjoy your stay here.


He is invoicing clients and receiving the funds from them. Paypal business services is a good way to do that.

I'd never use it for casual remittances or to transfer money from abroad to myself but it is as good as any out there for his purposes.

One advantage is how ubiquitous PayPal is. If he is billing clients in many countries they all will have access to PayPal accounts.

I would watch out for currency exchange fees. He would be better off billing in one currency and using that to deposit to his Philippine account in the same currency. 

USD is the de facto international currency, if he is billing in Europe then Euros or perhaps sterling, will work fine as well. Less international currencies, i.e. Brazilian, will not have the ability to have Philippine accounts in that currency so he will lose an exchange fee in converting.


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## mogo51 (Jun 11, 2011)

I assumed he meant he was sending the money to himself via paypal, what you say it true.


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