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Tax: Money transferred from Ireland not my country (in EU). How Store is working?

    Question

  • Hi,

    I have my app in the Windows Store registered to my Polish account and I receive money transfers to my Polish bank account from Microsoft Ireland (based on the bank details). As tax filling time is coming I would like to understand is this income is considered as "abroad income", like I would earn it in the Ireland or my local Polish income, just money are transferred from outside?

    Also, I would like to understand how Windows Store operates. I assume Microsoft pays all sales taxes. I just upload my app to Microsoft Store and give a license to sell it. Microsoft is selling it, earns money and just pay me for giving the app and "license" to sell it, so I don't have to worry about single purchases and markets. In my understanding I provide the app to Microsoft and Microsoft pays me every month for using it in the store. Is this correct?

    Thanks,

    Jacek

     


    Jacek Ciereszko (http://jacekciereszko.pl, http://BestW8Apps.com, http://geekswithblogs.net/silverblog)

    Monday, February 24, 2014 8:18 AM

Answers

  • Hi Jacek,

    Details of app pricing, payments, transactions and tax information related to developer accounts are addressed in Section 5 of the App Developer Agreement. Withholding rates and Tax treaty benefits can be found at the bottom of the Setting up your payout account article, but I have included this below:

    Withholding rates

    The info you submit in your tax forms determines the appropriate tax withholding rate. The withholding rate applies only to sales that you make into the United States; sales made into non-US locations are not subject to withholding. The withholding rates vary, but for most developers registering outside the United States, the default rate is 30%. You have the option of reducing this rate if your country has agreed to an income tax treaty with the United States.

    Tax treaty benefits

    If you are outside the United States, you may be able to take advantage of tax treaty benefits. These benefits vary from country to country, and may allow you to reduce the amount of taxes that the Windows Store withholds. You can claim tax treaty benefits by completing Part II of the W-8BEN form. We recommend that you communicate with the appropriate resources in your country or region to determine whether these benefits apply to you.

    Thanks for posting!

    -Jonathan


    Windows Store Developer Support

    Office Store Developer Support

    Friday, March 7, 2014 3:57 AM
    Moderator

All replies

  • Anyone? I just would like to know:

    1. Will I get any tax form from Microsoft specific for my country (sth like W-2 in US)?

    2. Does Microsoft pays any taxes on my behalf?


    Jacek Ciereszko (http://jacekciereszko.pl, http://BestW8Apps.com, http://geekswithblogs.net/silverblog)

    Monday, March 3, 2014 2:19 AM
  • Hi Jacek,

    Details of app pricing, payments, transactions and tax information related to developer accounts are addressed in Section 5 of the App Developer Agreement. Withholding rates and Tax treaty benefits can be found at the bottom of the Setting up your payout account article, but I have included this below:

    Withholding rates

    The info you submit in your tax forms determines the appropriate tax withholding rate. The withholding rate applies only to sales that you make into the United States; sales made into non-US locations are not subject to withholding. The withholding rates vary, but for most developers registering outside the United States, the default rate is 30%. You have the option of reducing this rate if your country has agreed to an income tax treaty with the United States.

    Tax treaty benefits

    If you are outside the United States, you may be able to take advantage of tax treaty benefits. These benefits vary from country to country, and may allow you to reduce the amount of taxes that the Windows Store withholds. You can claim tax treaty benefits by completing Part II of the W-8BEN form. We recommend that you communicate with the appropriate resources in your country or region to determine whether these benefits apply to you.

    Thanks for posting!

    -Jonathan


    Windows Store Developer Support

    Office Store Developer Support

    Friday, March 7, 2014 3:57 AM
    Moderator