BlackBerry® World™ Development

[JeffLemon]

Under each of my apps I have the following drop downs:

US Withholding Tax Classification:

Canada Withholding Tax Classification:

But what should I set each one to:

One Time

Rental

Service

Also does anyone know, on the Canadian Tax Form, NR 301, what type of income is money from app sales?

- Interest, dividends, and/or royalties

- Trust income

- Other, specify

[samyotte]

The information at https://developer.blackberry.com/appworld/faq#question7 should help. If not, there are some email addresses you can use to engage the app world team

[JeffLemon]

Thanks, the FAQ does not answer my question though, are apps sales or royalties?

[samyotte · Accepted solution]

I'd expect them to be sales, however according to the FAQ customersupport@blackberrycommerce.rim.com would be best to answer/comment

[JeffLemon]

Thanks, I've also sent them an email for clarification.

[peter9477]

Jeff, see this for one informal definition courtesy of the Canadian gov't agency (CRA) responsible for tax stuff: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/104/rylts-eng.html

"Royalties are considered payments received as compensation for using or allowing the use of a copyright, patent, trademark, formula, or secret process. They can also include payments in regard to cinematic films, film works, or television tapes."

[JeffLemon]

I emailed blackberry 3 weeks ago and still no response. What to do now?

[SanderT]

Have you received an reply yet?

The way I entered the form was using Sales everywhere (US/CA). And in the US also One Time.

For what it is worth, I believe in CA all app sales are considered sales and never royalties.

In the US however, If you for example provide a subscription model, like for example a monthly fee, it could be considered a service IF you app stops providing content/use if the subscription ends or isn't renewed (which is different from in-app purchases, which are considered sales when no renewal method is available). I haven't encountered any app which uses a rental model, because no content from the app or the app itself is borrowed and can be returned(only provided as a service in case of subscription).

Hope this helps!

[dbb]

I have just sent an email to customersupport@blackberrycommerce.rim.com inquiring about proper selection of Canadian tax treatment, pointing them to this discussion.

[MSohm]

Please refer to the FAQ posted at (https://developer.blackberry.com/devzone/appworld/faq.html) for examples of classification on sales and royalty.  If the apps are considered to be one time sale, the income on Canadian NR301 should be reported under “other” with description of “business income”.  If the apps are considered to be royalty, please report as “royalty”.