Paypal and exchange of information
- Thread starter LisaSimpson
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It looks like the Automatic exchange reporting is similar for banks and Paypal. It means that in order to be safe, people should open a business Paypal account rather than a personal or premier (boosted personal) account.
Thanks for this great share. It has been known since a long time they exchange data, but what let you think this is different for companies and business PayPal accounts?
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Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.
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Disclaimer: Nothing I say should be taken as tax, legal or financial advice. Anything I say is for general informational purposes only. Always seek independent professional advice.
I have asked Paypal. They told me the CRS reporting procedure was different for People and Companies.
Business account: Reported to where the company resides
Personal account: Reported where the paypal account owner resides.
I have asked paypal: Business account reported to where business resides. Personal account reported to where the individual resides.
Thanks for clarification. So if you have the Company in the same country as you residency you get reported anyway!?
If you have a personal account yes. The government where you are a fiscal resident will receive information about your paypal account.
I am sorry I have the ideas in my mind but now on the paper. Paypal considered itself like a bank. It means they will provide all the information that banks usually give to government in the context of the automated data exchange of financial information from the OECD. In other words, in few years, if you have a personal PayPal account, wherever you are on earth, your government will know the money you earn from PayPal. In other words, entrepreneurs will not be able to start with a personal paypal account. They will have to start with a business paypal account not to have problems.
they are a registered bank in Luxembourg for that reason they are reporting your account to the local tax authorities, rest assured about that!
Then, according to CRS, The luxembourg authorities transfer the data to countries from the OECD.
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