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I think you are wrong. If you pass 1M$ in 2020, your 2021 apple tax rate would be 30%. Key parts: If a participating developer surpasses the 1 million USD thr

I think you are wrong. If you pass 1M$ in 2020, your 2021 apple tax rate would be 30%. Key parts: If a participating developer surpasses the 1 million USD threshold, the standard commission rate will apply for the remainder of the year. -> Yes. For that year, first 1M is 15% but remainder is 30%. But following year, it's 30%. If a developer’s proceeds fall below the 1 million USD threshold in a future calendar year, they can re-qualify for the 15% commission the year after. ->So anything you make affects your future tax rate.

gjsman-1000 6y ago
In that case, Apple is expecting that the odds of somebody making less money in 2022 because of the increased rate compared to 2021 to be very unlikely. I.e. If you sold exactly $1M and were taxed at 15%, Apple takes $150K and you make $850K. Under an increased rate of 30%, that means you would lose money if you made less than approximately $1.25M in the year after, but the odds of someone with $1M in revenue failing to get to $1.25M by next year is very unlikely.
- deleted 6y ago
  [deleted]
- stickfigure 6y ago
  > the odds of someone with $1M in revenue failing to get to $1.25M by next year is very unlikely. Apps tend to be faddish, especially games. There's an upswing and a downswing. Little stays popular forever.
impalallama 6y ago
Yes, the Tax Rates can be in brackets because you fill them out once a year. Any developers can fill me in but I doubt apple is either holding onto payments so they can apply their tax at the end of the year or “charging” a developer at the end of a year based on how much they make. Apple Tax is on a per transaction basis so while it might be nice if Apple changes every company 15% and then 30% after they made a certain amount that’s not what they are doing and instead you have to “prequalify”.
- tehlike 6y ago
  It works like marginal rate for the year. If you made less than 1m in 2020, your taxing is 15% on first 1m and 30% on the rest in 2021. In 2022, your tax rate would be 30% since you no longer qualify for this.if you make less than 1m$ in 2022, you start at 15% again in 2023

gjsman-1000 6y ago

In that case, Apple is expecting that the odds of somebody making less money in 2022 because of the increased rate compared to 2021 to be very unlikely. I.e. If you sold exactly $1M and were taxed at 15%, Apple takes $150K and you make $850K. Under an increased rate of 30%, that means you would lose money if you made less than approximately $1.25M in the year after, but the odds of someone with $1M in revenue failing to get to $1.25M by next year is very unlikely.

deleted 6y ago
[deleted]
stickfigure 6y ago
> the odds of someone with $1M in revenue failing to get to $1.25M by next year is very unlikely. Apps tend to be faddish, especially games. There's an upswing and a downswing. Little stays popular forever.

impalallama 6y ago

Yes, the Tax Rates can be in brackets because you fill them out once a year. Any developers can fill me in but I doubt apple is either holding onto payments so they can apply their tax at the end of the year or “charging” a developer at the end of a year based on how much they make. Apple Tax is on a per transaction basis so while it might be nice if Apple changes every company 15% and then 30% after they made a certain amount that’s not what they are doing and instead you have to “prequalify”.

tehlike 6y ago
It works like marginal rate for the year. If you made less than 1m in 2020, your taxing is 15% on first 1m and 30% on the rest in 2021. In 2022, your tax rate would be 30% since you no longer qualify for this.if you make less than 1m$ in 2022, you start at 15% again in 2023