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Declaring PayPal income

Posted 3 January 2013 under Tax Questions



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I need help with declaring income from admob.
I've been developing apps and have recently been receiving a good income stream from admob, paid to me via PayPal.
Would it be better to register a company?
Or should I continue receiving the money in a personal capacity?

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TaxTimTaxTim says:
11 December 2012 at 22:55

Depending on how much income you receive would determine whether you should register a company or not. Companies are taxed at 28% whereas the highest individual rate is 40%. If you are earning more than about R300 000 taxable income for the year, basically profit then it would make sense to register a company as the lower tax rate could be beneficial to you. However there are administration issues such as company registrations, annual returns, possible audits or independent reviews with running a company so these need to be considered as well.


Shaun says:
12 December 2012 at 7:38

My basic salary is more than R300k. And so far this year I have made more than R7000 with admob.
What would be the best to do regarding this extra income?


TaxTimTaxTim says:
12 December 2012 at 13:20

Comparatively the R7 000 income is a small amount and the hassle of registering and maintaining a company for this amount would lead me to suggest maintaining it in your personal name for now.


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