Just a tip for you, although you might have ‘lost’ the 20% withholding tax when it was deducted from Apple’s payment, you should be able to get it back again by claiming a tax credit when you file your end year tax return. I.e. you should pay less to your local tax department because you have already paid the tax in Japan.

Sure, it sounds a bit strange, but be sure to tell your accountant or tax advisor that you’ve have tax withheld in Japan and you want to claim a credit in your end of year return.

In iTunes Connect it says “World” and then “Free Apps” has been accepted. It also says “US” and “Paid Apps” accepted. But there doesn’t seem to be a place for “World” and “Paid Apps.” I want to sell my paid app around the world, and specifically in the Japan, Australia and Canada iTunes stores. Am I allowed to do this without filing out the tax forms at the bottom of iTunes Connect? (Let’s just say at this time I don’t care about the extra 20% withholding) Is it automatic that we can sell paid apps overseas if we are a US developer? The whole “free apps” listing under “world” is what is so confusing to me.

Thanks for your help,
Jessica

http://www.orrick.com/JP/news/newsletters/Feb_2004.htm

——-

Hello

Europe financial reports customer price includes VAT, whereas the USA reports and others do not. This is consistent with how the customer is used to seeing pricing on items. In the USA, the sales tax is added at the time of checkout, and not included in the individual item.

This VAT is then deducted, and paid to local tax authorities, before the 70% calculation.

Next, there is a 20% withholding tax deducted on Japan payments until your tax exemption form is accepted by the Japanese tax authorities.

Lastly, there are intermediary/correspondent bank fees deducted en route on all international cross border wire transfers.

If you have any further questions, please don’t hesitate to contact us.

Kind regards,

Apple Finance

(I just had the same surprise. I don’t care as much, though.)

I tried to fill out these forms months ago and got stuck on two fronts. First, the IRS lived up to typical government bureaucracy and rejected my application for proof of residency, requesting much of the same information I sent with my original application. Not until after cashing my $30 check for the processing fee, of course.

Second, my company is a two person LLC electing pass-through taxation and Apple’s instructions defer to the Japanese forms for what constitutes acceptable documentation. The Japanese forms are very vague themselves, and Apple never answered me when I sent them email asking for clarification.

My products don’t sell much in Japan, though, so it might be years before I have to worry about that 20%.