Tax on iPhone developer payments

Question

Anybody know how Apple deals with taxes when they pay developers their 70%? Do they take out taxes before paying you your share or is it simply up to the developer to state the amount on their taxes?

Answer 1

To cut the story short, Apple will hold up to 30% of what they owe you for tax purposes unless you supply them with a W-8BEN form which states that you do not need to pay taxes in the US because you pay them elsewhere. That form requires a valid SSN (the US Social Security Number) which you will not have if you are not a US citizen.

from: http://blogs.oreilly.com/iphone/2008/06/quick-tip-for-nonus-iphone-dev.html

Answer 2

You need to fill out a W-8BEN and give it to Apple to avoid a 30% tax withholding. This requires that you have a SSN (Social Security Number). If, and only if, you do not have an SSN, you may supply an ITIN (Individual Taxpayer Identification Number) or an EIN (Employer ID Number).

To get an ITIN, you need to fill out form W7 and submit that to the IRS.

Answer 3

As others have noted, in the US Apple automatically takes 30% unless you fill out a W-8BEN form (which you can do in iTunes Connect). What's worth adding is that this is not a US-only thing. You have to complete a similar form if you want to avoid being taxed twice on sales in Japan. These are the two that Apple help you with, though there may be others.

Answer 4

For a consulting/freelancer gig I called up the IRS and they told me to fill out W-8BEN and just put in my European VAT ID.

Disclaimer: This is no advice to just do that! I am not a professional when it comes down to taxes and I have no clue where you are from.

So all I am saying: Talk to your local IRS representative (in the country where you are from).

Answer 5

As far as I can tell, the information in this thread is not accurate for U.S. residents -- at least for me.

I'm a U.S. resident, and I don't remember filling out any special forms beyond the minimum that Apple's web process guided me through.

Taxes are not being withheld from my sales. The direct deposit into my bank account from the U.S. sales of my app in December was exactly:

(number of units sold) × (my app's sale price × 0.7 for Apple's commission)

To the penny.

I strongly advise that you check your numbers before filing your taxes.

Answer 6

Anyone outside the US:

I live in Ireland and called a specific IRS office on 215-516-6999 (Pennsylvania) and got an EIN over the phone as I was classed as as "Nonresident alien required to obtain EIN to claim tax treaty benefit."

You can't get an ITIN over the phone, just an EIN.

You'll need to answer a few questions, mostly multiple choice as you're not allowed any free form stuff and to give your name, address, contact details etc.

Locally I declare any earnings from offshore and pay taxes in my home country.

Hope this helps anyone who's wondering.

Answer 7

Neo,

You got an EIN as a sole developer in Ireland or because you have a business or a sole proprietorship? Sounds like if you are an individual developer, you have to get an ITIN and not an EIN (Employer ID #).

Feedback appreciated,

Cheers

Answer 8

hello I have a question. I am going to register an apple account under my friend name who is residence in Cyprus. Should we submit anything for tax information? ITIN or EIN? or they are for USA and Canadians?