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    Apple Announces App Store Small Business Program

    (www.apple.com)
    830 points todsacerdoti | 11 comments | 18 Nov 20 11:04 UTC | HN request time: 0.687s | source | bottom
    1. fredley ◴[18 Nov 20 11:10 UTC] No.25135446[source]▶
    Seems like tipping over $1m of revenue means your App Store tax now suddenly doubles?
    replies(8): >>25135467 #>>25135468 #>>25135472 #>>25135474 #>>25135477 #>>25135481 #>>25135529 #>>25135541 #
    2. black_puppydog ◴[18 Nov 20 11:12 UTC] No.25135467[source]▶
    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...?

    replies(1): >>25135486 #
    3. terramex ◴[18 Nov 20 11:12 UTC] No.25135468[source]▶
    > 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.

    4. ◴[18 Nov 20 11:12 UTC] No.25135472[source]▶
    5. manuelflara ◴[18 Nov 20 11:13 UTC] No.25135474[source]▶
    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.
    6. beardedscotsman ◴[18 Nov 20 11:13 UTC] No.25135477[source]▶
    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%.
    7. trollied ◴[18 Nov 20 11:13 UTC] No.25135481[source]▶
    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.
    8. fredley ◴[18 Nov 20 11:14 UTC] No.25135486[source]▶
    I'd hope so too, but it doesn't seem to be worded that way.
    replies(1): >>25135571 #
    9. ben_w ◴[18 Nov 20 11:20 UTC] No.25135529[source]▶
    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-...

    10. bergwald ◴[18 Nov 20 11:22 UTC] No.25135541[source]▶
    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.

    11. bergwald ◴[18 Nov 20 11:25 UTC] No.25135571{3}[source]▶
    No it doesn't. You can receive the reduced rate only if you qualify for the program.