3 ms·

Seems like tipping over $1m of revenue means your App Store tax now suddenly doubles?

black_puppydog 6y ago
I'd hope they've learned from tax law the world around and only apply the 30% rate from the second million...? Edit: just read the sibling comment... that seems... unnecessarily complicated and non-reactive to short term changes...?
- fredley 6y ago
  I'd hope so too, but it doesn't seem to be worded that way.
  - bergwald 6y ago
    No it doesn't. You can receive the reduced rate only if you qualify for the program.
terramex 6y ago
> If a participating developer surpasses the $1 million threshold, the standard commission rate will apply for the remainder of the year. > If a developer’s business falls below the $1 million threshold in a future calendar year, they can requalify for the 15 percent commission the year after. So they take 15% commission from first million and 30% from later sales until developer falls below million in a calendar year.
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manuelflara 6y ago
The way it is written, that seems to be the case. I imagine -since it makes really more sense, for people doing "a bit over 1M"- that it works more like tax brackets: 15% on your first million in revenue, 30% after that.
beardedscotsman 6y ago
Only on sales beyond the $1m, also its calculated after the apple compensation, so its on total sales of $1.15m then you pay 30%.
trollied 6y ago
No. The app store has always taken a 30% cut, so there's no "suddenly doubles" about this. It's a new rate. The new rate is 15% for <$1m commission. Once you hit $1m it reverts to the 30% rate.
ben_w 6y ago
No, revenue over $1 million now now come with the same the level of fees they had before this announcement. I mean, would you say “The Epic tax on the Unreal engine suddenly goes up by a factor of infinity” when you reach the $1 million threshold? https://arstechnica.com/gaming/2020/05/unreal-engine-is-now-royalty-free-until-a-game-makes-a-whopping-1-mill/ https://arstechnica.com/gaming/2020/05/unreal-engine-is-now-...
bergwald 6y ago
The year-on-year qualification system is nonsensical and punishes developers with declining revenues. A developer with revenues over $1m in the current year but under $1m in the next year would not qualify for the reduced tax rate. They should have implemented a progressive tax system for everyone, not just those who qualify on a yearly basis.

I'd hope they've learned from tax law the world around and only apply the 30% rate from the second million...? Edit: just read the sibling comment... that seems... unnecessarily complicated and non-reactive to short term changes...?

fredley 6y ago
I'd hope so too, but it doesn't seem to be worded that way.
- bergwald 6y ago
  No it doesn't. You can receive the reduced rate only if you qualify for the program.

terramex 6y ago

> If a participating developer surpasses the $1 million threshold, the standard commission rate will apply for the remainder of the year. > If a developer’s business falls below the $1 million threshold in a future calendar year, they can requalify for the 15 percent commission the year after. So they take 15% commission from first million and 30% from later sales until developer falls below million in a calendar year.

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manuelflara 6y ago

The way it is written, that seems to be the case. I imagine -since it makes really more sense, for people doing "a bit over 1M"- that it works more like tax brackets: 15% on your first million in revenue, 30% after that.

beardedscotsman 6y ago

Only on sales beyond the $1m, also its calculated after the apple compensation, so its on total sales of $1.15m then you pay 30%.

trollied 6y ago

No. The app store has always taken a 30% cut, so there's no "suddenly doubles" about this. It's a new rate. The new rate is 15% for <$1m commission. Once you hit $1m it reverts to the 30% rate.

ben_w 6y ago

No, revenue over $1 million now now come with the same the level of fees they had before this announcement. I mean, would you say “The Epic tax on the Unreal engine suddenly goes up by a factor of infinity” when you reach the $1 million threshold? https://arstechnica.com/gaming/2020/05/unreal-engine-is-now-royalty-free-until-a-game-makes-a-whopping-1-mill/ https://arstechnica.com/gaming/2020/05/unreal-engine-is-now-...

bergwald 6y ago

The year-on-year qualification system is nonsensical and punishes developers with declining revenues. A developer with revenues over $1m in the current year but under $1m in the next year would not qualify for the reduced tax rate. They should have implemented a progressive tax system for everyone, not just those who qualify on a yearly basis.