Infinite Livecode Pledge
ambassador at fourthworld.com
Tue May 24 14:00:24 EDT 2016
Mike Kerner wrote:
> On Tue, May 24, 2016 at 9:57 AM, Richard Gaskin wrote:
>> It doesn't seem much different from how it works in the States -
>> from the Kickstarter tax guide:
>> In general, in the US, funds raised on Kickstarter are considered
>> Sales tax may also be applicable in certain cases depending on the
>> local rules. In general, sales tax applies only if the creator has
>> sufficient connection to the location of the backer.
> It is completely different. VAT comes off the top line, like an excise
> tax. Income tax comes off the bottom line. Therefore, if a firm is
> plowing funds into development, it can be at or below 0 on the bottom
> line, therefore the tax on the funds would be zero, and depending on
> its previous history, there may even be a federal rebate. Sales tax
> doesn't apply in a case like this because you aren't getting a LC
> t-shirt, playing cards, phone sleeve, etc. Then there is the
> difference between S-corps and C-corps, and their bases and rates,
> which would further depress the tax on the take.
It's true that rates and policies differ by jurisdiction.
My only point is that evidently most jurisdictions consider income from
Kickstarter and other crowdfunding options as taxable revenue.
If you have any luck getting any of them to change that let us know how
it works out.
Fourth World Systems
Software Design and Development for the Desktop, Mobile, and the Web
Ambassador at FourthWorld.com http://www.FourthWorld.com
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