Thread by @BitCakeStudio

Do you know how much money a Brazilian dev makes for each sale on Steam? Do you know how much is lost in each step before the money gets to your account? Then follow this 🧵

Steam has an obligation to withhold 30% of the number of sales made in the US territory after its share (21% of the total).

This happens because Brazil does not have a tax treaty with the USA. Taxes end up being charged twice, once in each country.

So let's start by assuming total gross revenue of $100 (yes, dollars!), ready to be withdrawn from Steam.

Check out how the approximate distribution in case 100% of the game purchases were made by American customers:

Outside the United States, revenue share is higher since withholding isn't charged, around 66.6%, this number looks better, but be careful, if you opt-in for Steam regional pricing, you might have to sell more copies to reach $100 gross revenue.

According to SteamDB on 10/18/2022, several games had their selling price in Brazil over 60% lower than the American price.

A game that sells for $10 USD in the United States would be sold for $3.77 USD in Brazil with the regional pricing on that date.

Considering the regional price in Brazil on this date, the same game would have to sell around 1.7x to earn the same gross income if compared to sales in the North American market.

A Brazilian developer company's net revenue (after taxes and miscellaneous costs):

~41% of gross revenue from sales within the United States. Depending on company tax variables and bank fees.

59,9% of gross revenue from sales outside the United States. Depending on company tax variables and bank fees.

Keeping in mind that regional prices make more sales necessary to hit the same amount.

That's all, folks! We hope to have helped to clarify a little about the relationship between the Brazilian developer and Steam 👋