Making Money with Android

Question for Polish developers

It’s question for Polish only but it’s english forum so I will speak english.

As you know having a company means ZUS and you have to pay 1000zł every month even if you don’t earn money. I don’t have a company yet because it’s gonna take a while to gain first 300zł on admob.

Do I have to create a company to get the first money or maybe such low ammount like let’s say 100zł/mc doesn’t require it and I can write in PIT as ‘others’?

Also if admob pays me 100zł i got 100zł or still I have to decrease it by 18%?

You need to create company when you earning are constant.

If I were you and started earning constant money in nearest months I would consider this year earnigs as “others” on pit-36. Then you have 18% pit till 85k zl and 32% when above 85k.
I would create company in january 2015. Then you need to choose 19% pit or 2 stages of pit (18%, 32%).

You need to pay PIT from all earnigs (admob included).

You need to consider also if you want to pay VAT when creating company.

You almost certainly need VAT number (and EU VAT number) to deal with Google Ireland, so there is no choice in that when creating a “company”, you need to be a “vatowiec” (we are talking about sole propietorship here not a real company, company=spółka, sole proprietorship = jednoosobowa działalność gospodarcza). You can ask an accountant - the first meeting is free most of the time.

For the first 2 years your ZUS will be lower (about 450zł + accounting cost), then higher (1050zł right now) unless you already had a company in your life. And go for linear 19%, it’s only 1% difference and when you reach the 32% it is really, really painful, believe me.

You have to pay the 18% no matter if you create the company or not - declaring it on PIT-36 will require you to pay the tax. As long as the amounts are low, it should be OK. You can always create the company quite quickly if the revenue starts getting too high, but ask an accountant.

Thanks for the reply.
So i think that the best solution would be to wait until i start to earn more money. Maybe starting the company in 2015 will be good idea if the revenue is high enough.
Any of you have started in such way?

Unfortunately not, so I can’t help you. I had a company since the very beginning (since I lost my job and decided to do freelancing before even hearing what Android is).

It depends on source of income.

If you sell apps (or IAPs) on google play then you need company even if you earn 0PLN, so paid apps are problematic (Google doesn’t sell apps, formally they are only distributor).
If you sell apps on AppStore then you may treat it as income from patents so it’s more like income from ads (AppStore sells apps and gives you % because of IP rights).
If you have earnings from admob you may for some time be normal person and fill pit and pay 18%tax (admob gives you full amount so you have to pay taxes).

What’s worse with google play apps you probably need company with EU VAT what sucks even more.
Personally I had ads on Google Play and ads/IAPs on AppStore, so I could easily migrate from 18%tax as normal person to 19%tax as company.

Thanks for the reply. I am glad that i’ve asked here. It’s much more clear to me right now:)

In your situation I would wait with registering company (single person company) as long as possible. Probably after you reach some reasonable income. I think you can set on AdMob to receive money on demand only, so you can wait until it’s big :slight_smile: