I had my first sale today, I made 1.25 USD after all the TAXES over the sale and there was 0.60 USD withholding TAX ?

I am from India, I had my first sale for PSD template and I made 1.25 USD after deduction of all the TAXES, still I was charged 0.60 USD for TAX withholding ?

I want to know why this deduction is made and of about 48% of my earnings ? :dizzy_face:

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  • You priced your PSD template at $4 USD.
  • Envato takes a buyer fee of $2 per sale for that category, leaving you with $2.
  • You’re a new, exclusive author, so Envato takes an author fee of 37.50%, leaving you with $1.25.
  • India’s tax rate is 15%, so you should be left with about $1.06.

Issue is, you did get taxed nearly 50%. Perhaps you filled out your tax forms incorrectly? I would advise you to increase your item’s price, and also contact support to figure out the tax issue.

Maybe someone else on the forum will have an explanation for that as well. :slight_smile:

I have checked the details of my account, I clearly mentioned I am from India and checked my tax info also. In that page it is being mentioned that for US withholding TAX I would be charged a max amount of 30% in some cases and the regular charges are 15%, still I have been charged 50%.

I have raised my concern on your contact system too, lets see what they have to say about it.
Very Disappointed

Theme forest takes that much from authors? Jesuuuss…

You’ve not been charged 50% withholding tax, nobody is charged any more than 30% withholding tax. There are three possible fees/charges/taxes that could out of the sale price… the buyers fee (a fixed amount), the authors fee (a percentage based on your exclusivity and amount sold) and the withholding tax (a percentage calculated on the item price and based on your country and the buyers country). The item price is the total sale price minus the buyers fee.

If you’ve filled out the W8 form and included a valid foreign ID number (I believe it’s the PAN for India) then there’s no reason why the withholding rate shouldn’t be correct. The only way to get more from a sale now is to increase the price of your item or sell more so you reduce the author’s fee.

Income Summary to Earnings Account Amount
Net Sales $2.00
Net Referral Earnings $0.00
US Royalty Withholding Tax (withheld) -$0.60
Net Envato Author Fees -$0.75
Envato Swift Fees $0.00
Envato Skrill Fees $0.00
Other Account Adjustments $0.00

Total: USD $0.65
Net Change to Earnings Account

Please check this out!

Please check this out!

The withholding rate for India is 15%, but you’ve been withheld 30%, which means you’ve filled out the W8 but not included your foreign tax ID number. Do that and you’ll have 30 cents withheld rather than 60 cents on a similar sale.

Just rise the price so you receive what you want to receive. Simple.

Well that would affect the no. of sales for the item.

Thanks, will do it!

If envato wants your money all you can do is rise the price in order to receive the amount you want / need… really, nothing more you can do.

Yes I guess that’s the only option.

Just an FYI: Prior to author driven pricing (the ability to set your own prices) the buyers fee was 20% of the total price. With an item price of $2, the buyers fee of $2 is 50% of the total price. Just so you know!

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Thanks for the info :slightly_smiling_face:

@initializetechnologi Congratulations :tada: the journey starts now