Australian (ASX) Stock Market Forum

Tax question re: foreign income

Joined
May 10, 2016
Posts
42
Reactions
15
hi all,

just a question on a specific type of foreign income, i own a few domain names, and have them "parked" on a us-based parking platform, the platform collects parking revenue for me, in usd, and generates reports which enable me to see what im earning, even daily ... sometimes it's only a few us cents, often days go by with nothing at all, the way the platform works though is i only receive funds into my paypal account whenever i ACCUMULATE about usd 10 worth of revenue ... question is, do i report to ato (converting to aud amount) only for the dates i actually receive a payment (maybe twice a year at most), or do i have to track every time i "earn" the us at it's source, sometimes 1 us cent worth ... thanks
 
Joined
Jun 17, 2006
Posts
321
Reactions
315
hi all,

just a question on a specific type of foreign income, i own a few domain names, and have them "parked" on a us-based parking platform, the platform collects parking revenue for me, in usd, and generates reports which enable me to see what im earning, even daily ... sometimes it's only a few us cents, often days go by with nothing at all, the way the platform works though is i only receive funds into my paypal account whenever i ACCUMULATE about usd 10 worth of revenue ... question is, do i report to ato (converting to aud amount) only for the dates i actually receive a payment (maybe twice a year at most), or do i have to track every time i "earn" the us at it's source, sometimes 1 us cent worth ... thanks
Look up cash accounting and accrual accounting.

Cash accounting is when you are paid. Given your smallish size I would say this would be the way to go.

Accrual is when you earn it, but I think it has to be a decent size business like $2m plus to use accrual.

Most use cash...as in when they are paid.
 
Joined
Dec 25, 2012
Posts
49
Reactions
17
For small amounts, you could justify using the monthly exchange rate, and just doing monthly calculations under cash accounting for each time you receive money in your accounts.
 
Top