- Money generated from crowd funding is considered to be income. Plain and simple. Not a donation, a gift or whatever. Just plain old income. Which means that you need to pay income tax. Which - for the $90.000+ generated from the 'ADOM: The Resurrection' campaign is about 42+% in Germany. Luckily costs can be deducted before taxation if the costs accumulate in the year of the campaign. Which means that now I am in a big hurry to get the ADOM Lite RPG and the boxes finished as they - besides payroll - are one of the biggest cost positions by far. But it means that - whatever is left after all the costs - will be reduced by about 42% before it gets to my bank account.
- I learned something new that was quite a (bad) surprise. In Germany we have yet another tax called "Umsatzsteuer" (probably called VAT in other countries)... and it also applies. Umsatzsteuer is either 7% or 19% depending on your "goods" and from what I know it's 19% for computer games (which ADOM is). So 19% of your income from crowd funding (before costs - which hurts double!) will be paid as Umsatzsteuer (VAT), roughly one-fifth. Which is a lot. Luckily there is an exception: Umsatzsteuer seems to apply because you are regarded as a small business (which you are in Germany if you earn more than 17,500 EUR per year from said business). Luckily Umsatzsteuer is something that gets applied with a year delay - so if I had earned more than 17,500 EUR with ADOM in 2011 I would have had to pay 19% Umsatzssteuer for the crowd funding income. "Luckily" my ADOM income in 2011 was far below that so that I don't need to pay Umsatzsteuer in 2012. But I will have to pay Umsatzsteuer in 2013 on all income generated from ADOM (e.g. Google Adwords). Something to keep in mind for next year.
- Costs can be deducted before income tax as mentioned above. But the cost must be generated in 2012 - otherwise it doesn't apply. So we'll have to move a lot of work and other expenditures to 2012 in order to make them applicable. Otherwise taxes would be deducted first and only then could costs be applied which almost would halve the value of the funds.
In summary: Be very careful if you estimate the costs for your project. There are many things that will reduce the final pledge amount, tax being one of the most important.