<aside> <img src="/icons/info-alternate_gray.svg" alt="/icons/info-alternate_gray.svg" width="40px" /> What Is Income Tax

Income tax is a tax levied on the income or earnings of an individual or business by the government.

It is calculated as a percentage of the income earned, and the rate may vary depending on the level of income.

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<aside> <img src="/icons/info-alternate_gray.svg" alt="/icons/info-alternate_gray.svg" width="40px" /> Why Do We Need To Pay Income Tax

Income tax is a way for the government to collect funds from individuals or businesses based on their earnings.

This money is then used to finance government services and programs, such as infrastructure, public education, healthcare, and social welfare.

By paying income tax, citizens contribute to the maintenance and improvement of their country's public services and help promote the common good.

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<aside> <img src="/icons/info-alternate_gray.svg" alt="/icons/info-alternate_gray.svg" width="40px" /> How To Determine If Income From Your Online Activities Is Taxable

Income from online activities that are undertaken on your own account for a profit is taxable.

This is especially if your activities are conducted repeatedly in an organised manner like how a typical business is being run.

Such income is taxable regardless whether the activities are undertaken on a part-time or full-time basis.

Where the online activities are carried out through a platform based overseas (e.g. Amazon from United States), the income you derive is considered locally-sourced and taxable in [country you are from] if the business operations supporting the online activities are based in [country you are from].

Example

Derek earns a commission whenever a customer buys a product he promotes on his video channel or website.

He also earns advertising revenue from his video channel.

The commission income and advertising revenue earned through online affiliate marketing are taxable.

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