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Super Contributor
JeffLemon
Posts: 440
Registered: ‎01-13-2011
My Device: Playbook
My Carrier: NA
Accepted Solution

Tax Classification?

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

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BlackBerry Apps: Instruments | ARTPAD | Piano | Drums | Xylophone
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BlackBerry Development Advisor (Retired)
samyotte
Posts: 246
Registered: ‎12-20-2010
My Device: Torch
My Carrier: Rogers

Re: Tax Classification?

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
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Super Contributor
JeffLemon
Posts: 440
Registered: ‎01-13-2011
My Device: Playbook
My Carrier: NA

Re: Tax Classification?

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

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BlackBerry Apps: Instruments | ARTPAD | Piano | Drums | Xylophone
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BlackBerry Development Advisor (Retired)
samyotte
Posts: 246
Registered: ‎12-20-2010
My Device: Torch
My Carrier: Rogers

Re: Tax Classification?

I'd expect them to be sales, however according to the FAQ customersupport@blackberrycommerce.rim.com would be best to answer/comment
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Super Contributor
JeffLemon
Posts: 440
Registered: ‎01-13-2011
My Device: Playbook
My Carrier: NA

Re: Tax Classification?

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

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BlackBerry Apps: Instruments | ARTPAD | Piano | Drums | Xylophone
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Developer
peter9477
Posts: 6,473
Registered: ‎12-08-2010
My Device: PlayBook, Z10
My Carrier: none

Re: Tax Classification?

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."

Peter Hansen -- (BB10 and dev-related blog posts at http://peterhansen.ca.)
Author of White Noise and Battery Guru for BB10 and for PlayBook | Get more from your battery!
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Super Contributor
JeffLemon
Posts: 440
Registered: ‎01-13-2011
My Device: Playbook
My Carrier: NA

Re: Tax Classification?

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

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BlackBerry Apps: Instruments | ARTPAD | Piano | Drums | Xylophone
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New Developer
SanderT
Posts: 24
Registered: ‎03-06-2012
My Device: Z10LE / DevC / PlayBook
My Carrier: T-Mobile

Re: Tax Classification?

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!
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Developer
Developer
dbb
Posts: 39
Registered: ‎03-17-2009
My Device: Not Specified

Re: Tax Classification?

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

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Administrator
MSohm
Posts: 14,517
Registered: ‎07-09-2008
My Device: BlackBerry Z30, BlackBerry PlayBook
My Carrier: Bell

Re: Tax Classification?

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”.

Mark Sohm
BlackBerry Development Advisor

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