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Affiliate Marketing and Taxes – What You Need To Know

Are you an affiliate marketer and/or earn your money online?  Do you think as long as your bank account is in some offshore jurisdiction you can get off from paying 0% tax?

There’s saying there’s 2 things that are certain in life  –  death & taxes.  And as the world moves toward globalization, this will be become more true year after year.   Yeah globalization is good from some perspective, but it’s very bad from others – you be the judge.

Did you know that if you open a bank account in Hong Kong and you are say from the EU,  then your government will know? *

A new policy went into play on January 1st, 2016 called the AEOI which stands from Automatic Exchange of Information created by the O.E.C.D. organization. (What is the OECD? Well according to the US Government its and I quote “The Organization for Economic Cooperation and Development (OECD) is a unique forum where the governments of 34 democracies with market economies work with each other, as well as with more than 70 non-member economies to promote economic growth, prosperity, and ustainable development.”)

At the time of this writing 97 countries around the world opted to take part in the AEOI.

I dug in to learn what kind of information they exchange.  Doing some searching on oGoogle – I was able to come up with the very protocol which banks must use to send our information back to our governments.    Lets just say EVERY SINGLE thing you can imagine; that they might have from you – they will give away.  But feel free to take a look right here

*List of countries that joined the automatic data exchange programme

References:

-http://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/crs-by-jurisdiction/#d.en.345489

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  • Lee

    hey mate, good post..
    Regards

    PS: Fix your special characters

    • I’m not sure how to fix them, any tips?

      • It’s fixed, can’t believe how easy it was too :D

  • Andre

    Hi Attila,
    Do you know if they going to exchange bank information that is under a company?
    For example: Company in Seychelles + bank account somewhere in the world.

    Now the money from that account are company money, no? So what they will report then?

    • You need to review the automatic exchange of information and see if your country that you reside in is on the list / where you are a resident off.

      Seek out expert advice, to make sure. Ask them to give you references (law codes)

  • YanBen

    “Did you know that if you open a bank account in Hong Kong and you are say from the EU, then your government will know? *”… they’ll know… in 2018 ;-)

  • Afflover

    Hey Attila, Thanks for the Heads up. One thing I wanna know is whether they gonna share the old information of the account or are they going to share only the information from the date when the AEOI comes into force i.e, the future transactions?

  • Ryan Dinz

    Hey Attila, just wondering. I was looking at the list of countries and noticed USA is not on it. Does that mean American citizens are still allowed to avoid taxes by holding $ in offshore accounts?

  • mass

    Hi Attila
    Hong Kong hasn’t done it yet.( they should do it in 2018 ) Knowing China and the Chinese i’m not sure they would do it.
    How can you be sure about that ? I have 2 ecommerces and a hk company, i’m 26
    I would like to deepen this issue with you if you like