Taxation

Hi,

We're a game Development start-up based out of Ireland. We're getting ready to launch an asset on the unity asset store in the coming weeks. I understand that unity take 30% of all sales and pay quarterly or pay monthly if done through paypal.

I'm wondering what the situation is with tax on this? Do i just declare (to Irish revenue) my 70% received from unity as my company earnings from Unity technologies every quarter?

Do i have to do anything with US tax or other jurisdiction tax?

Thanks in advance.
Sam

 

I would really ask your local Tax authority on this. I would not take the word of the Forum members on this question.

 

thanks.

 

My understanding is that if you are not registered for VAT, Unity shall take a percentage of your European (not UK) based income to pay the EU tax for you, this is why your product cost in Euros vs USD is inflated above the current exchange rate.
As a UK based company, you must pay corporate tax (~20%) on ALL income, including those from the asset store. If you are over the VAT threshold you must also subscribe for VAT via HMRC.

So to answer your question, you will have to declare all income to the tax man, which will most likely be taxable. Remember the 30% taken by unity is not merely for taxes, but for their profit/covering the cost of the service.

P.s. I am unsure if this is all relevant to Ireland.

 

Thanks very much for this info. Good to know i just have to make a declaration to Irish Revenue of "company earnings" from unity.