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I am a blogger and live in a country where PayPal does not exist. My relative lives in Australia. If I use his PayPal this way, will I have to pay Australian tax? (He does not have a PayPal account but he can create one.)

Ad networks will pay to his PayPal then he will send that money to another PayPal account from a different country.

That money will not be used to buy anything online. the sole purpose of that PayPal account is to receive the payment and send the money to another PayPal account (send money to friends and family).

*Sorry for my bad English.

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PayPal transactions are not taxed in Australia.

Income is taxed, and Ad network income is income. Your relative will receive the money, and will have to declare the income so it can be taxed. Your relative will then have to pay the tax.

If you are to do this, you should transfer enough money from each payment for your relative to pay the tax; the rest you can move around however you wish.

  • I am not sure that this is true (not an expert, only guess). PayPal balance is not real money. To pay income tax he has to withdraw the money to bank account or credit card but he will re-send them to PayPal. In addition PayPal is located outside of Australia (Luxembourg). – i486 Apr 27 '18 at 14:21
  • @i486: Money on PayPal is real money (well as real as on any other bank account) and PayPal actually is a real Bank in it self. Also, for tax purposes it does not matter if you are payed in sheep, stock or $ or tokens, what counts is the equivalent value at the time of payment! – Daniel Aug 1 '18 at 14:11
  • @Josh: In addition, said relative basically acts a payment-provider to OP, so it may be he has additional obligations through this, especially in respect to anti-money laundering laws. – Daniel Aug 1 '18 at 14:14
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I would say that as long as the money don't leave PayPal you should be fine. Especially if we re talking about small amount as the ones typically associated with individual blog ads. The point of exit from Paypal into the banking system is where I would give more attention in regards to taxation.

  • Actually, Paypal is a bank (registered in Luxemburg) – Daniel Aug 1 '18 at 14:06

protected by Chris W. Rea Mar 3 at 19:59

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