Itunes Connect Tax Information

Question

Level 1

18 points

Itunes Connect Tax Information

Hi,

I'm an individual developer from germany (no company) and I want to sell my app via the AppStore.

Does anybody know if I need an ITIN (Individual Taxpayer Identification Number)? If so, what do I have to do?

What is the Reference Number good for?

Do I have to fill in something in Line 10?

Any help would be appreciated!

Antworten auch gerne auf deutsch 😉

MacBook Pro 15", Mac OS X (10.4.7), 2,16GHz 2GB RAM 100GB

Posted on Jul 14, 2008 12:50 PM

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Answer 1

Best reply

mpatric

Level 1

12 points

Jul 17, 2008 9:59 AM in response to trumi

I went to the US embassy in London to see what I needed to do. They will only issue an ITIN if accompanied by a signed letter from Apple on an Apple letterhead stating that I will be earning money in the US. I've tried enquiring at Apple to see about the possibility of getting this, but it doesn't look promising.

The other option is an EIN (there is a link on iTunes connect to the SS-4 form for applying for this), but this is intended for companies, not individuals. However, the form says "certain individuals" can apply for an EIN. I am going to phone someone at the IRS to inquire about this. I understand you will need to do an annual US tax return too.

Michael.

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Answer 2

trumi Author

Level 1

18 points

Jul 17, 2008 10:36 AM in response to mpatric

I've already solved that issue.

I wrote a mail to the apple support and had an answer within half a day.

It is very easy, because you do not need any number at all. Here is what they wrote:
---
There is no withholding on applications since the contract is a sales/commission basis, as opposed to a "royalty" basis.

Therefore, please enter nine zeros (000000000) in the space provided for the tax ID number. There will be no withholding, and nothing reported to the IRS for USA sales.

There are no treaty benefits since these are not "royalty" payments. I know this is confusing, but our tax department wanted to have these tax forms completed.
---

So in line 6 enter the nine zeros and check SSN or ITIN.
As an individual you would not need any reference number in line 8.
For me it was enough to check line 9a.
Line 10 can be left blank as well as line 11.

Hope this helps!

It seems to be important, that you do not check the box at line 11

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Answer 3

Jul 17, 2008 10:43 AM in response to trumi

Actually you do need an EIN which you can get by ringing the IRS up in the states (they have a phone number for non us citizens to call) and they will issue you with one over the phone.

Without this you apply for 0% tax withholding under whatever treay your country has with the USA.

All of this is detailed in the iTunes Connect application when filling in your tax information.

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Answer 4

Jul 17, 2008 10:44 AM in response to Michael Kaye

Forgot to say Apple specifically suggest you use the term "Royalties" in the income type.

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Answer 5

Jul 19, 2008 2:22 AM in response to trumi

Thank you very much, as a Swiss citizen (and a n00b concerning taxing stuff) I was confused by the whole setup, downloaded 3 different forms, browsed the irs.gov website for almost an hour and was about to call to the US to get this done.

Now looks good so far. 🙂

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Answer 6

Jul 28, 2008 2:56 PM in response to trumi

To the thread starter:

Have you resolved your issues in the meantime?

(Ich stehe nämlich momentan vor genau den gleichen Problemen und die Antworten hier helfen auch nicht wirklich weiter.)

piiit(at)gmx(dot)de

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Answer 7

Jul 29, 2008 7:55 AM in response to leberwurstsaft

I'd like too to have news...
I carefully read the documentaion and it looks that if you are not a US resident, and you earn money on itunes US, apple will retain tax for you.
BUT, if you compile the form, saying that you are NOT a US resident, no taxes will be reatained.
in my case, there's an agreement between US and Italy and I'll get a 5% tax only...

Did I undestood correctly ???

thanks
Mauro.

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Answer 8

Jul 29, 2008 8:31 AM in response to maurodelrio

Yes. Fill up the forms. Contact the IRS by telephone and they will issue you with an EIN (employee Identification Number) number. Use this on your forms....

Check your Tax Treaty (online( with the US and fill in the percentage withheld and the Article of the treaty...plus enter the term "Royalties"...for payment type.

send all the forms to the address indicated and eventually you will be "official".

Hope this helps. M.

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Answer 9

Jul 29, 2008 8:52 AM in response to trumi

I did exactly this and it worked well. Both my free apps and paid apps contract are now in effect (after about a week) and my app is now ready for sale. So I expect it to be in the AppStore any day now.

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Answer 10

Jul 29, 2008 9:16 AM in response to trumi

I simply used, per another developer's suggestion, nine zeroes, got the right article number for Canada (XII) from one of Apple's links, put on 0% royalties, and sent it off. The problem on Apple's form is that it says to indicate SSN, ITIN or EIN. Their form is screwy in that there is no apparent button for SSN.

If you put in nine zeroes and click ITIN, then check 9(a) [usually] and fill out the % fields right, including the "reason" section (I simply filled in "Canadian citizen and resident) it creates the right form and emails it to you to sign and mail in. I had no problems with my application as a Canadian that way.

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Answer 11

trumi Author

Level 1

18 points

Jul 30, 2008 10:34 AM in response to trumi

I can only tell what they told me to do as a german citizen.
Here are the detailed instructions:

everything should be already filled up to line 5.

6. U.S. Taxpayer Identification: fill in nine 0 and check SSN or ITIN

7. Foreign Taxpayer Identification Number: leave blank

8. Reference Number(s): leave blank

9. I certify that: as an individual (no company) check a. (I don't know what to do if you have a company, may be someone can add this information)

10. Special rates and Conditions: leave blank

Part III: Notional Principle Contracts
do not check

Part IV: Certification
check

You're done 🙂.

Hope that helps!

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Answer 12

Jul 30, 2008 5:22 PM in response to trumi

Awesome 🙂

Thanks a lot. Gonna do it right now.

Which is your app on the AppStore? 🙂

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Answer 13

trumi Author

Level 1

18 points

Jul 31, 2008 12:55 PM in response to leberwurstsaft

it's called iSudoku and I got the "Ready for Sale" status on July, 28th, but it is still not available on the AppStore 😟

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Answer 14

Aug 1, 2008 7:11 AM in response to trumi

Wow, I really don't get all those delays. Why is this whole procedure so lenghty? I'm glad I thought of setting this stuff up already. I would've been irritated to find out how complicated it really was if I waited up until my app is done.

Well, thanks again. I hope you can sell your work soon!

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Answer 15

Aug 2, 2008 3:32 AM in response to trumi

My (free) App has been "Ready for Sale" for 8 days now... :P

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