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I have a Paypal account which is linked to my bank account (primary). In my country taxes are 40%. However, I want to withdraw money in Paypal to other bank account in other country (secondary).

The question is: to what country will the taxes go? Is there any legal issue of not paying taxes for the first country?

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    Knowing the countries would help. Also what is the source of the money in PayPal? Dec 12 '21 at 17:10
  • The source of the money is Upwork.
    – rksh1997
    Dec 12 '21 at 17:12
  • primary country is Norway, secondary one is Egypt
    – rksh1997
    Dec 12 '21 at 17:13
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    You received the money. What account it was received into or what you plan to do with the money after withdrawing it don't affect your tax liability.
    – chepner
    Dec 12 '21 at 17:58
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    this sounds decidedly dodgy and smacks of money laundering and tax fraud combined. I know of no jurisdiction where income need not be declared.
    – 24601
    Dec 12 '21 at 18:03
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The question cannot be answered in the way you phrased it. We don't know the countries involved, amounts involved, and what is the source of the money. I suggest you discuss it with a licensed tax professionals in the countries involved.

In general, most countries follow these rules (with deviations in details, and occasional exceptions):

  • If the money is yours, you can transfer it as you wish as long as it remains yours.
  • Some countries require reporting (but not paying taxes) on transfers of money between your accounts, either foreign or any.
  • If the money is new income to you, you'll be taxed on it by the country(ies) that have jurisdiction over that income, regardless of where and how you choose to transfer the money.
  • If there's a tax treaty between the countries involved, you may need to resolve conflicts, otherwise each country has its own rules with regards to double taxation and recognition of foreign tax liability. If multiple countries are involved you may end up being double taxed (pay taxes in multiple countries for the same income).
  • Some countries require reporting, or even forbid, accounts their citizens/residents have in other countries.
  • All countries will frown upon you moving money around in order to complicate the tracing and attributing of any potential tax liability (aka "money laundering") and would consider actions design to avoid tax liability as an act of crime. A lot of the reporting requirements are intended to prevent exactly that.
  • Many countries have mutual disclosure agreements where they would disclose to each other what accounts and assets citizens of one have in the other.

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