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The Omega
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Hey guys quick question. If you sell a commercial rpg maker game, would you have to file your revenue for taxes? 
 

Shaz

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Absolutely!


I've moved this thread to Commercial RPG Maker Discussion. Please be sure to post your threads in the correct forum next time. Thank you.


Please put all your questions about commercial games in this forum.
 

Milena

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I have the same query, Shaz. Does this work with all countries, or are we specifically talking about the US?
 

Kes

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Any country which has a system of income tax (and as far as I know all countries do) requires you to declare all your income so that tax can be assessed correctly.  Failure to do so will count as tax evasion.  Each country will have a system of tax allowances which may reduce the amount of tax you pay, but the actual income has to be revealed before the allowances can be claimed.

So for game making, all legitimate expenditure to make the game (e.g. paying for resources, paying for a hosting site) will - in most jurisdictions - be deducted from your income and tax charged on the rest.  But there's no getting round the basic requirement to tell the tax authority that you have had some income.
 

Celianna

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Also ... every download needs to be taxed. So not only do you pay tax over the total income, but also for every sale.


In my country, the tax is at 21%, so I need to charge my customers 21% more over the final price.


Your best bet is to start talking to an accountant.
 

GrandmaDeb

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@JAD94,

I don't know much about selling games, but having helped hubby with businesses for years, I do know a little bit about small businesses.

Everything is an expense. Keep track of EVERYTHING.

If you use a computer, if you buy resources to try out, obviously the game maker, the table the computer is on, the notebook you write your ideas down on, the meal you eat while discussing your game with a friend (50%), the gas you use driving to a video game store to research what games are popular, your internet service -

These things may not all be 100% deductible, but a good accountant can shield a large portion of your "income" as "expense" rather than "profit." And you only pay taxes on profit.

Tax avoidance is not illegal. Only tax evasion.

If you are serious about making money, you should be serious about paying taxes, and also about keeping good records.
 
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Lunawolfcomics

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Thank you all for the input :)

This whole game development path is so much more demanding than expected haha  :stare:
 

Dogstep

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If you are under the age of 18 do you have to pay taxes on the revenue?
 

Shaz

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Check with your accountant Dogstep.
 

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