4 ms·

Great, but "problems of success" aside, here's another question which is probably more an international law question but, here goes... Out of the gate, I am se

Great, but "problems of success" aside, here's another question which is probably more an international law question but, here goes... Out of the gate, I am seeing folks from all over the world signup for my ad network (mainly, US, India, Singapore), and it has me scratching my head. I don't know how to deal with these customers should they ever convert on a sale. Does this affect the way I will pay taxes on the revenue? Are there countries I should absolutely NEVER try to send money to (for example, if the country is under embargo)? If for some reason, I can't pay folks from those places, what becomes of the tax burden? Is the tax liability for 100% of it on me, or can the money sit forever on hold without being taxed (presumably until the embargo is lifted)?

camz 16y ago
Well income tax wise you'd have to pay taxes on the income regardless of where it's coming from. If there is a country that is under embargo (which I don't know haha) then you're keeping all of the income. Thus, you would have to pay tax on the full amount because you never remitted the portion of the sale that was supposed to be your cost. If you pay it out later on, then you could take a deduction for it later. This is a common issue that people deal with. It's essentially cost of goods sold. It'll become part of your COGS once you pay it.