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Navigating Fiscal Realities: A Guide for Aspiring Indie Hackers
Whether you’re contemplating starting your own business or are an aspiring indie hacker planning to release an app on global platforms, understanding the fiscal implications of your operations is crucial. This goes beyond the surface-level calculations of your monthly recurring revenue (MRR) and digs deeper into the impact of global economic environments, tax regimes, and personal circumstances on your net income.
The first step is to acknowledge that not all revenue is disposable income. As an app developer on the iOS App Store, for instance, you are subject to a standard global deduction, the Apple commission, which is currently set at 15% for developers earning under $1 million annually. However, this is just the beginning of deductions that your gross income may be subject to.
Taxes play a significant role in shaping your net income. These can include value-added taxes (VAT), income taxes, and potential other levies, the rates of which can vary vastly from one jurisdiction to another. For instance, European countries typically have higher income tax rates compared to regions like the Middle East or the Caribbean, where income taxes are low or non-existent.
It’s not just about tax, though. The cost of living and inflation rates also affect your financial health. These are specific to…
