Proving worldwide income

[stevy777]

Is contextual advertisement income (like Adsense), classified as worldwide income ? And if so how would we show it to be ?

Some countries have territorial based tax systems and only tax on income made in the country itself, and not on worldwide income (of course this only applies to non-US people) - how would this income be shown to be worldwide and not generated from the country itself

Any thoughts on this line ?

 

[Martin Everson]

Countries with territorial tax often say income that arises outside the country and that is not remitted into the country is tax free. If the paying agent for Adsense is outside the country itself and the income from that Adsene does not arise in your resident country you should be fine.

However if you are paranoid and take the view that customers in your country clicking on it could be considered local income then block Adsense code from appearing in your territorial country with some website code. I don't know if you can do this blocking from Adsense end but worth checking as it would be easier perhaps. I wouldn't bother working out the tax implications if the issue can be easily resolved by blocking people from your territorial country from generating any income for you. After all who knows what reports Google will supply to tax man in future over where income is generated.