Tuesday, April 22, 2014

Managing Contracts, Taxes, and Banking

Use the Contracts, Tax, and Banking module to manage contracts with Apple, provide required financial information relating to iTunes developer payments and tax withholdings, and track the status of your iTunes agreements. If you plan to charge customers to download your apps, start with this module right away to request a contract for selling paid apps.

About the Team Agent and Other Roles

Only the team agent can request or accept a contract. See “What Is a Team Agent?.” Users with an Admin or Finance role can view the Contracts module and can enter banking and tax information. In addition, these users can be notified when changes occur in the Contracts, Tax, and Banking module.
To configure a user to receive notifications


Enrolling in the iOS Developer Program or the Mac Developer Program includes agreeing to a contract that allows the organization to distribute free apps, worldwide, in the App Store or Mac App Store. The team agent can agree to additional contracts that describe the terms for the following privileges:
  • iOS or Mac Paid Applications contracts allow the organization to sell apps in the stores.
  • An iAd App Network contract allows the organization to include Apple iAd advertising in iOS apps.

Viewing Contracts and Contract Status

The team agent and any users with an Admin or Finance role can view contracts for the organization.
To view contracts and contract status
The contract for distributing free apps is maintained as part of the iOS or Mac Developer Program License Agreement that the team agent agreed to when joining the developer program. The contract is valid for all subsequent members of the organization.
To view the free apps distribution contract

Requesting a Contract

Only the team agent for an organization can request new contracts.
To request a contract

Extending a Contract

When a contract is nearing its expiration date, iTunes Connect sends email notifications to users with Admin, Legal, and Finance roles. Email messages are sent when there are 30 days remaining, 15 days, and 5 days. On the day the contract expires, all users in the Member Center organization receive an email indicating that the contract has expired.
To extend a contract, initiate a request through Member Center. When you do, iTunes Connect automatically applies the extension to your contract.

Contacts and Legal Entity

Your legal entity name, provided when the team agent enrolled in an Apple Developer Program, is the name displayed on the store as the “Seller.” iTunes Connect uses your legal entity information to match contracts, banking information, and tax information that are associated with your organization. For example, if you applied for a U.S. Federal Tax ID as a sole proprietor but used your business name when you set up your Apple developer account, Apple may not be able to reconcile your contracts and tax information, which would keep you from being able to sell apps.
If you enrolled in the Apple Developer Program as a company, you can set a company name separately from your legal entity name. See “Decide on Your Company’s Name.”
To review your legal entity and contracts contact information

Adding Contact Information

Apple requires that you provide contact information. The Company Contacts that you add in the Contracts module don’t have to be iTunes Connect users. Include the most appropriate people in your organization to address legal, financial, or marketing issues that may arise regarding your sale of apps through Apple.
When you add contact information in iTunes Connect, those contacts can be assigned to any contracts in effect for the organization. Contacts don’t have to be iTunes Connect users.
To add a contact to iTunes Connect Contracts

Setting the Contacts for a Contract

You can associate the contacts you enter in iTunes Connect with different responsibilities regarding contract management.
To set the contact for a contract management role


To sell apps through the App Store or Mac App Store, you provide banking information so that Apple can pay you for apps sold. iTunes Connect stores all the bank information you specify. However, only one bank account is used for payments against all contracts. You can edit or update banking information anytime. Banking updates made while payments are in process are applied to the subsequent period’s payments.
For more information about banking issues, see “Banking and Tax” in the iTunes Connect FAQ, available by clicking FAQ at the bottom of any iTunes Connect page.

Setting Up Banking Information

Apple makes all payments electronically. If you can’t identify your bank in iTunes Connect, it may be that Apple can’t send payments to that bank. For example, Apple doesn’t send payments to bank accounts that require additional instructions such as “For Further Credit.” Apple also doesn’t send payments through intermediary or correspondent banks.
iTunes Connect users with an Admin or Finance role can enter banking information.
To set up a new bank account

Updating Banking Information

To change an existing Bank Account Number, Bank Name, or Bank Code, you need to add a new bank account, as described in “To set up a new bank account.” Other changes can be made in the existing account.
iTunes Connect users with an Admin or Finance role can update banking information.
To change banking information for a contract

Validating Banking Information

Apple must verify banking information before allowing apps to be sold. In addition, Apple validates updated banking information before changing payments from an existing bank account. The validation is typically complete in 24 hours. iTunes Connect sends a notification email to indicate that the banking information is updated; if you don’t receive notification that the information was successfully updated, check in iTunes Connect to see the status of the update.


iTunes Connect helps you determine which tax forms are required and allows you to submit many of the forms electronically. The tax forms required in the context of a particular contract are listed in the Tax Info column for that contract. If the same tax form is required for more than one contract, you complete the form one time and the completed information is applied to all other relevant contracts.
For more information about tax issues, see “Banking and Tax” in the iTunes Connect FAQ, available by clicking FAQ at the bottom of any iTunes Connect page.

Determining Tax Requirements

Tax forms are available in iTunes Connect as follows:
  • U.S. Tax Forms. Required for all organizations.
  • Australia Tax Forms. Required for organizations based in Australia.
  • Canada Tax Forms. Required for organizations based in Canada.
  • Japan Tax Forms (“learn more” link). Optional for organizations based outside of Japan who sell apps in Japan. Not required for organizations based in Japan.

Providing U.S. Tax Information

To meet the requirements of the Paid Applications contracts, all organizations must file U.S. tax forms.
Users with Admin or Finance roles can enter tax information.
To provide U.S. tax information
Apple submits the U.S. tax information to the IRS.

Providing Australian Tax Information

Tax information is required for organizations based in Australia. Although your organization may not be required to register for goods and services tax (GST) with the Australian government, Apple requires that Australia-based organizations have a GST registration to sell apps.
To meet Apple’s tax requirements, you’ll need an electronic copy of your GST registration and evidence of your Australian Business Number (ABN). The evidence can be screenshots or PDF files of the ABN registration pages from the ABN Lookup site. Collect the current details with enough information to associate this ABN with the legal entity name you’ve given Apple and the historical details to show that the organization is registered for the GST.
Users with Admin or Finance roles can enter tax information.
To provide Australian tax information

Providing Canadian Tax Information

Tax information is required for organizations based in Canada or registered for GST/QST in Canada. Apple allows you to post apps for sale in the App Store or Mac App Store as soon as you start the process of downloading and delivering the forms. However, you won’t be paid for apps sold in Canada until Apple has received signed tax information forms. If you send the files to Apple promptly, you won’t see any delay in earnings payments.
To complete Apple’s requirements for Canada tax information, you’ll download Canada Revenue Agency forms, provided with instructions in iTunes Connect. Fill out the appropriate form or forms, print and sign them, and mail them to Apple. Apple reviews the form or forms to make sure they are complete and that the legal name associated with the registered business number matches the legal entity name in iTunes Connect. Apple then signs the form or forms and returns them to you.
Note that organizations based in Quebec must complete Canada Form GST506 and the Quebec Form FP-2506-V.
Users with Admin or Finance roles can enter tax information.
To provide Canadian tax information
Print, complete, sign, and mail the form or forms to Apple at the address provided. Make sure to send the forms with original signatures. Apple fills out the remaining sections, signs the documents, and returns them to you.

Providing Japanese Tax Information

For sales in Japan by organizations that are based outside of Japan, Apple withholds taxes at the rate required by the Japanese Tax Authority. If you are based in a country that has a tax treaty with Japan, you can file Japanese tax forms to take advantage of reduced withholding rates. Apple provides forms, instructions, and reviews your material to help you file the forms and to ensure success.
If your filing is approved by the Japanese Tax Authority, Apple changes the withholding rate used to calculate earnings from the Japan store. The change doesn’t apply to sales made before the filing is approved.
Users with Admin or Finance roles can enter tax information.
To provide Japanese tax information
Apple processes the information and returns it to you by email with additional forms and requirements. Complete the remaining information, print, and sign these documents and mail them to the Apple address provided. You’ll need to send two original versions of the Japan Tax Authority documents. U.S. organizations need to send the completed Form 8802 to the IRS.
Apple reviews the documents and forwards them to the Japanese Tax Authority. When the Japanese Tax Authority sends them back to Apple, Apple lets you know if your request was granted and updates the tax withdrawal rate used to calculate your payment for sales in Japan stores. Your royalty payments are subject to the standard withholding rate until the filing is approved by the Japanese government.

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