Internet Marketing and the Source of Income

As many of you all know the current trend of doing online business, or earning money through online. But as simple as both statements sounds, it differs a lot, especially on the second one. The reason behind of me stating this is because online business simply means doing business online and with the such of having a bidding online, online auction, selling stuffs through online.


But earning money through online has the other form of generating the income streams. Why can I tell you this, is because I have tried it before and I know what is it all around. Earning money through online is in fact, like Marketing Communication companies do, but instead of approaching people or doing events elsewhere, their main focus is on online platform. But on the online platform, how to earn money? Some may post up ads, and for people to write post, such as PayPerPost or even KennySia.com, Malaysia's Famous Blogger that write post for companies who want to advertise. Still this is not that complicated.

The complications starts when a different method and many of them were used. With the likes of advertisement through Google Adsense, a subsidiary of Google that placed ads on people's website but without the discretion of the owner of the site. Yes of course, the owner will have to signed and agreed on the T&C, but what I mean is that, the owner will not know what type of ads will be generated as it is randomly generated but with an mechanism to focus on your post. Let's say you post on Golf, and the ads will have golf ads on your website. Thus, the earning streams comes from clicks known as PayPerClick, or PayPerImpressions and many more.

And with that, many of us will put that, and Google will only pay you if you reaches USD$100. And that will be darn freaking long, I can tell you, so some took advantage and started having lots of blogs with no details but with high intention to earn money, before Adsense have this blockage to stop this people for making it worse for the companies (as Google have to be responsible to the companies that placed the ads). And with that, the Earning Money Through Online Saga continues, as people even write up E-book for sale to people and teaching people how to earn money through online. Some established companies and method like Stuart Tan from Singapore had proven some of the theory and it did worked. But as usual, the pie of a pot of gold will be exhausted as well, thus many started trying this stuffs again and again.

Alright, let me tell you something, from what I believe is that, if earning money through online is that important, earned it with conscience. Do not take advantage of the money but in the prospects of learning. This is essential and heaven-of-important. And let me share this story of a 17 Malaysian Boy (2008, where I was hyped about the issue) who earned about RM 10 000 in a month. The boy name is Labanon, now I think is 19-years old, and he did the same thing browsing such stuffs and trying what I was trying to do that time. But anyhow, the stories goes like this, my main concern is not how he earned the money, but what is the tax implications of this scenario.

As magnificent as it sounds, we are Malaysian we are to drawn down to it to see some implications even though you are capable of earning it. With the previous few post on Income Tax, he is not in the working force yet, and is still studying. Will he be charged for Income Tax?

The answer will, in my opinion (correct me if I'm wrong) will vary in a different way. First of all, the question is not his age, but the income stream. Is it periodical income stream (that means constant) or it is an one time payment? And even if it is an one time payment, is the profit from a business?

With that we will get a clear answer is that yes, this is an income by definition of Section 4 of ITA 1967. And from that, I will evaluate the point from here. Even without his parents knowledge, he has to pay income tax, with the reason is that, although Google Adsense is in US, all the operations are done in Malaysia, and this is definitely true, because all bloggers who earned money through online paid taxes (subject if the income is more than RM 27000 annually). In addition to that, something that I learnt last time is that Google will have an agreement with you to state whether you are a citizen of USA or not. If you are not, you are not asked on the tax code, but..there is a BUT! In the terms and conditions, you have to bear your own cost for tax, as you are not paying tax and google do not have to pay for you. So in both countries with taxation system, and with both must have one side being paid tax, is simply, the blogger have to pay for the tax.

That's why, Tax is always a big issue..first because it involved money.and second it got too much things to consider...hehe..