Tax & Banking
Many developers “sell well but never receive payment” — the problem is usually tax forms not completed or banking not configured. This chapter clears up “where revenue comes from, how it arrives, and when”.
Revenue Share Mechanism
When a user completes a purchase on the App Store, Apple deducts commission and pays you the remainder:
| Item | Description |
|---|---|
| Standard commission | Apple takes 30% |
| Small Business Program | Developers earning < ~$1M/year get 15% |
| Long-term subscription discount | Auto-renewable subscriptions active for 1+ year drop to 15% |
| Your revenue | Sales × (1 − commission), minus applicable taxes |
If you’re an individual or small team, strongly consider applying for the App Store Small Business Program (submit in App Store Connect; eligible developers get 15% commission). It’s “a few clicks to save 15% of revenue”.
Tax Forms
In App Store Connect → Agreements, Tax, and Banking, fill in tax information:
- US tax: Apple is a US company; you typically submit W-8BEN (non-US individual) / W-8BEN-E (non-US entity) or W-9 (US taxpayer).
- Withholding: Apple may withhold US taxes depending on your country’s treaty with the US; correctly completing W-8 series forms usually reduces or avoids withholding.
- Other regional taxes: additional local tax info may be required depending on your entity’s location.
Don’t delay tax info. Agreement effectiveness and payouts require tax + banking configuration; some tax forms take time to review — configure them before release.
Banking
- Fill in your receiving bank account info in “Banking” (account name, account number, Swift/routing, etc.).
- The account name must match your developer entity (personal account → your name; company account → company account), otherwise payout may fail.
- Supported banks/companies vary by App Store Connect guidance; some regions support electronic banking or third-party payout services.
Settlement Cycle & Arrival
Apple’s payment cadence (monthly settlement, typically “month-end + arrears”):
- A purchase happens and counts toward the current month’s sales.
- After the month ends, Apple generates financial and payment reports.
- Once the minimum payment threshold is met, Apple initiates payment in the next settlement cycle (usually several days after month-end).
- Actual arrival is affected by bank processing and may lag by a few days.
To know exactly what each payment consists of, view Financial Reports and Payment Reports under “Payments and Financial Reports” — the former is sales detail, the latter is actual payout detail. The loop is closed only when they reconcile.
Reconciliation Checklist
- Apple Developer Program and App Store agreements signed
- Correct tax forms submitted (W-8/W-9, etc.)
- Banking account configured and matching the entity
- Settlement cycle and minimum threshold understood
- Can view financial and payment reports
- Reconcile report amounts against bank arrivals regularly
FAQ
- How does an individual developer fill tax? Submit W-8BEN as an individual (Chinese residents usually benefit from the US-China tax treaty rate), subject to Apple’s guidance.
- Never receiving payment? Check in order: agreements signed, tax forms complete, bank account correct, minimum threshold met, settlement cycle elapsed.
- Do refunds affect revenue? Yes. Refunds are deducted in subsequent reports.
- How do I get invoices/tax vouchers? Financial reports in App Store Connect can serve as revenue proof; consult a tax professional for filing specifics.
Tax matters vary significantly by country/region and entity type. This course gives a general framework; for specific filing and compliance, rely on Apple’s official documentation and local tax professionals.