Money in your pocket from Steam sales

Hi All

Does anybody know if you need to pay US tax on games sold on steam?
Meaning, does the IRS take a cut of the profits. Been reading the FAQ on steam and saw they take between 0% and 30% depending on variables, like the country you are from.
Was wondering how that affects devs in ZA.
If they do take 30% and Steam takes their cut, what is the dev left with? Sounds really steep.

Thanks

Comments

  • SA and the US have a tax treaty, so (if I understand correctly), once you have a US TIN (ITIN for individuals and EIN for companies) then you will be able to have a withholding rate at 0%, so no money will get paid to the IRS. Anything else is based on your agreement with Steam, which is generally understood to be sales taxes (like VAT) and 30%.
  • There have actually been quite a few Steam payment / tax discussions on the forums here in the past, notably this one:

    Steam & Tax Laws
  • There have actually been quite a few Steam payment / tax discussions on the forums here in the past, notably this one:

    Steam & Tax Laws
    Thanks for this. Will read through it.
    Thank you Francoisvn for your reply as well.
    Guess we just need to make sure our games are good and we sell HUGE amounts of copies then. :)


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