Understanding Net Earning Of My Item

I have a product on Codecanyon which costs $24. The Item has been sold 3 times and It shows only $19.86 in Your Balance on the dashboard. I’m really not understanding how this earning reaches from $72 to $19.86. What algorithms envato uses to calculate the author profits?

It seems like you haven’t provided your tax information yet, check this out:

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Buyer fee: 20% off the top:
$72 - $14.4 = $57.6

(Default) US Taxes + (exclusive) author fee = 30%+37.5% = 67.5%.
$57.6 - $38.88 = $18.72

This Is how Envato is calculating your fees/tax liability. Since your balance is $19.86 and not $18.72, perhaps your taxes are less than 30%, or your author fee is less than 37.5%.

India has a US tax treaty of 15%, so you should be able to reduce your tax liability by submitting the proper forms. In this example, a 15% tax rate would increase your earnings to $27.36

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You haven’t provide any tax information about you for Envato. Envato treat you now as an US Autor without any tax information = 28% Backup Withholding Tax on all your sales.

Purchase Price: $24.00
Buyer Fee: $24.00 * 20% = $4.80
Gross Income: $24.00 - $4.80 = $19.20
US Backup Witholding Tax: $19.20 * 28% = $5.37
Author Fee: $19.20 * 37.5% = $7.20
Net Income: $19,20 - $5.37 - $7.20 = $6.62 (commercially rounded)

3 sales: $6.62 * 3 = $19.86

You should send Envato your tax information (via account settings) in order to benefit from the tax treaty between your country and the United States

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