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  1. ajbpre's Avatar
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    Given the interesting (challenging) tax situtation that arrises for non-United States citizens distributing apps through the US based Palm Store, will developers in countries like Canada or the European Union be tempted to say "wot-ever", and give away their apps for free on the likes of Pre|Central?
  2. #2  
    Forgive me if I'm missing something obvious, but I don't see how the tax situation for non-US residents is incredibly challenging.

    I assume that Palm simply acts as a marketplace for people, which means that they only provide the conduit between developer and customer. At least in the US, this would translate into each developer essentially running their own [small] business, which means they would be required to file all the associated paperwork with the IRS themselves. I don't think that Palm would play a role in that at all. (In fact, I don't think they could, as any developer working from home and essentially running his/her own small business could have a boatload of deductions to take advantage of, and Palm wouldn't have anything set up to handle that.)

    If the above is indeed the case, I would assume that things would work similarly for non-US developers. It would probably be treated by the IRS just like profits from any other foreign-owned business, with filing tax returns and the like-- assuming that one's sales are significant enough and one actually feels compelled to go that route.
  3. ajbpre's Avatar
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    Quote Originally Posted by NOVA_Guy View Post
    If the above is indeed the case, I would assume that things would work similarly for non-US developers. It would probably be treated by the IRS just like profits from any other foreign-owned business, with filing tax returns and the like-- assuming that one's sales are significant enough and one actually feels compelled to go that route.
    Indeed. But how would the IRS treat profits from sales of software effectively imported into the United States? Who pays the taxes and where? Does Palm have to pay California sales taxes too? Does the IRS charge the non-domiciled developer, because they were earning in the US, even though sales are global? Meanwhile the developer is effectively exporting their product; so are import and export duties also applicable?

    Anyone got any experience of this with the i-Store?

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