If I sell any template $14 then how much I will earn? because I earn only 4.14 … what is “Tax Withheld” ? ThemeForest cut $3.36 for “Tax Withheld”. They will cut this from every project?
Thanks
Yes, because you don’t have submit your taxpayer infos to Envato (use Tax Information in your Account Settings). Until you did this, Envato must treat you as US author without any taxpayer infos = 28% US Backup Withholding Tax on all your sales!
If you give Envato your Bangladesh taxpayer data, you benefit from the double taxation treaty between Bangladesh and the USA = 10% US Royalty Withholding Tax only on sales to US buyers.
calculation now:
$14.00 - $2.00 = $12.00 ( $2.00 fixed buyer fee for PSD templates)
$12.00 is your gross income
$12.00 * 0.28 = $3.36 US Backup Withholding Tax
$12.00 * 0.375 = $4.50 Author Fee
$12.00 - $3.36 - $4.50 = $4.14 net income
with submitted tax infos:
US sales:
$14.00 - $2.00 = $12.00 ( $2.00 fixed buyer fee for PSD templates)
$12.00 is your gross income
$12.00 * 0.10 = $1.20 US Royalty Withholding Tax
$12.00 * 0.375 = $4.50 Author Fee
$12.00 - $1.20 - $4.50 = $6.30 net income
non US sales:
$14.00 - $2.00 = $12.00 ( $2.00 fixed buyer fee for PSD templates)
$12.00 is your gross income
$12.00 * 0.375 = $4.50 Author Fee
$12.00 - $4.50 = $7.50 net income
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