NEWS

In today's digital landscape, many individuals are exploring side hustles to supplement their income and achieve financial goals. One such option gaining popularity is participating in online surveys. Engaging in online surveys can be a convenient and flexible way to earn extra money in your spare time. However, it's crucial to understand the tax implications and how to optimise your earnings effectively.

Firstly, if you participate in online surveys solely for personal enjoyment and the income earned is incidental, it is likely considered a hobby by the Inland Revenue Department (IRD). As a hobbyist, any income earned is generally not subject to tax. However, if you actively engage in online surveys and focus on generating income through referrals or other means, the IRD may view it as a business activity. In this case, you would be required to report your earnings and adhere to the tax obligations associated with running a small business.

Understanding the tax implications of your online survey activities is crucial. As mentioned earlier, if it is considered a business, you must report your earnings to the IRD and keep accurate records of your income and expenses.

Online survey platforms often provide various redemption options such as PayPal transfers, gift cards, or vouchers. These would all need to be recorded as income using the monetary value.

Finally, it is advisable to consult with an accountant who can provide guidance specific to your situation. They can help you determine whether your online survey participation falls under the hobby or business category, ensuring compliance with tax regulations.

 

Disclaimer

This information is intended to provide general advice only.  We recommend you discuss your specific situation with your Accountant.