Withdraw funds from Paypal account to the company's current account (LLC)

Question

PayPal

Hello,

we have a small service for the provision of paid services online (courses and trainings). The task is as follows: connect Paypal to the company's current account and receive payments from site users. Users can be both from the Russian Federation and from the USA, for example.

The question arose - what to do with the tax? I cannot find information on how money is transferred from a paypal account to a company account, from a tax point of view. Let's say a US user buys a service via Paypal for $30. How can I officially, as the owner of a company that has a Paypal business account, see this money on the current account, and, most importantly, how can I show this tax profit?
I hope I have clarified the issue sufficiently. For some reason, Paypal did not give me a clear answer, advising the following: “PayPal does not have any information about taxation. Please contact your tax department. ".

Answer 1

Today, a corporate account in PayPal is in practice equal to ordinary accounts. In the process of registering and confirming your status as a legal entity, you link it to your bank account, where you can manually send incoming funds. It usually takes two to five days, well, if only the holidays can take longer.
The special status of an electronic account is manifested, however, in the fact that you cannot pay from it with other organizations, and there are also restrictions on the amount of one-time payments and the balance on the account. Read the paragraphs about legal entities in the User Agreement .
In addition, when opening an account for an organization, electronic or banking, the Tax Office and funds no longer need to be notified. The bank (or non-bank credit institution) is now burdened to do this instead of you :-)
Relevant as of March 2015. Good luck!

Answer 2

As an option, for some time now, paypal in Russia seems to fall under the CESP (corporate electronic means of payment). That is, it is essentially equated to a current account (hence the obligation to notify the Federal Tax Service, the FSS and the Pension Fund of their opening). Those. you can simply start counting all receipts to your business account and count them for tax purposes. True, if you have already had receipts and the deadlines for paying taxes on them have passed, then you need to come up with something. Therefore, you can “show tax profits” right now :)
As for the transfer specifically to the current account, there are probably a lot of options here, I don’t use paypal very deeply. In my opinion, it will not allow you to directly transfer to arbitrary details of a legal entity. As an option (I don’t presume to say that it’s optimal, but it immediately came to my mind) - open a corporate card for a legal entity, throw money there from a paypal, and then from a card to your current account. No taxes arise as a result of these manipulations, because all accounts belong to your legal entity.

Answer 3

I may be wrong, but you yourself must provide tax statements on bank accounts and pay taxes

Answer 4

As such, Paypel does not provide any documents. Only regular reports on income, expenditure, withdrawal and replenishment are provided. When withdrawing, the transfer comes with a code designation without any decryption (similar to Paypal transaction id) in rubles (if the company is a resident of the Russian Federation) to the account. So apparently yes, just notify the tax office (if the inspector confirms - we have our own rules in each tax office) about opening an account and take into account the amounts of transactions on this account.

Answer 5

As far as I understand, with the described scheme, you will still fall under currency control. I advise you to ask yourself these questions too.

Answer 6

If I'm not confusing anything, things are as follows:
1) A regular agency agreement is concluded with Paypel (in the form of an offer)
2) You issue invoices in rubles and receive money in rubles. What buyers pay is not your concern. So currency control is not needed here.
3) You take into account the funds received when paid by the buyer (i.e., upon their receipt by Paypel) and not upon the fact of their receipt on the current account.

Answer 7

Jholinar,
tell me, did you manage to find out this question?
I am faced with a similar task - to put the receipt of funds from Western clients "on stream". Explored various options, incl. registering a company in a foreign jurisdiction, but it turns out to be expensive for the first year of work ...
When settling with foreign persons, it turns out that the funds come from a non-resident (under an offer agreement). However, funds are credited to the account in rubles from PayPal LLC (=resident) (indeed, there is no currency control here - he simply will not see them).
However, it is also problematic to account for these funds, the offer will be with a non-resident, and the transfer to the account comes from the resident ...
How did you manage to resolve this? If you succeeded..
Thank you,
Diana

Answer 8

Good afternoon
Has anyone found an answer to the questions asked here?
It ’s also very interesting
, as far as I understand, with the bank to which money will come from PayPal, no currency control issues, no
money will come from a Russian counterparty,
but what about PayPal itself?
on the one hand, it is a non-bank credit institution, on the other hand, it is guided by the legislation of the Russian Federation and has a license from the Bank of Russia.
Is PayPal itself a currency control agent?

Answer 9

You can spend it through an exchange office - we, for example, would help you.
My-xchange.com

Answer 10

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