Tax Deductions

Tax Deductions

Hello, If an ISV has a W8-BEN number, then I understand that tax can then be deducted through the American tax system for paid app downloads. As I am not very familiar with the American tax system, can anyone let me know how much tax (as an estimate percentage) is deducted from a paid app download? Also, does this come from the entire price of the app or from the developers 70% share in revenue? Thanks in advance
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BrianDevArch's picture

Ben,

The total amount assessed for taxes would come from the portion paid to the developer (Intel pays their own tax on their portion).

You will want to consult the IRS for exact figures, however I would count on somewhere in the 30-40% range.

IRS Link that may help: http://www.irs.gov/individuals/article/0,,id=96196,00.html

Hi Brian,

Thanks for your help on this.

Here is another question I received from a different ISV:

If the company registers in an offshore banking zone, say Isle of Man for arguments sake, and this company already has a W8-BEN and EIN number too - what are the payment and various tax implications then?

Would they have to then register the specific PayPal account in the Isle of Man too?

The ISV expects to sell a large number of paid apps so this would be a more viable option for them financially

Thanks

BrianDevArch's picture

Ben,

Unfortunately I have no knowledge of the taxation laws of Isle of Man. I can point you to this link to the Treasury Department for some information:

http://www.gov.im/treasury/incometax/

Intel Support will likely have a more definitive answer for you shortly.

Hal's picture

Hi Ben,

Intel will only be able to pay developers that are from the supported list of countries.. Intel cannot pay developers in all countries due to tax and legal reasons. Please see http://appdeveloper.intel.com/en-us/article/faq#pay_00

Regards
Hal G.
Technical Support Team
Intel AppUp(SM) Developer Program
Intel AppUp(SM) Center

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