Apple's App Store tax updates for September 2025 introduce new VAT and PIT in the Philippines and Vietnam, impacting developer proceeds and ASO strategies.
Apple's App Store has announced significant tax and pricing updates effective August 21, 2025, with pricing adjustments starting September 8, 2025, impacting developers in the Philippines, Vietnam, and other regions.
These changes, driven by evolving tax regulations and exchange rates, affect app and in-app purchase (IAP) pricing, as well as developer proceeds across 175 global storefronts supporting 44 currencies.
Let's explore what's new, where it matters most, and what you should do next.
Apple is adjusting proceeds and prices in multiple regions due to changes in tax policies and exchange rates. Here's the rundown:
Foreign entities:
VAT climbs from 5% to 10%.
Foreign individual developers:
Introduced 5% Personal Income Tax (PIT) replacing Corporate Income Tax (CIT); 0% VAT exemptions for media no longer apply—everything is taxed at the standard rate.
Vietnam-based organizations:
Apple stops remitting 5% Foreign Contractor Tax (FCT) on behalf of developers; now applies to Apple's commission instead.
Vietnam-based individual developers:
2% PIT (replacing CIT) plus 5% FCT on Apple's commission; VAT exemptions removed entirely.
Also, Exhibit B and Exhibit C of the Paid Applications Agreement have been updated to reflect Apple's new tax collection obligations in the Philippines and Vietnam.
Starting September 8, 2025, pricing for apps and IAPs (excluding auto-renewable subscriptions) will be updated in the Philippines and Vietnam storefronts unless these are set as the base storefront.
Developers using these regions as their base will see no price changes locally, but other storefronts will adjust to maintain price equalization based on exchange rates and tax changes.
You can preview these changes in App Store Connect's Pricing and Availability section and manually adjust prices if needed.
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The new tax structures, particularly in the Philippines (12% VAT) and Vietnam (up to 10% VAT, 5% FCT, and 2-5% PIT), reduce developer proceeds unless prices are adjusted to offset these costs.
For developers not using the Philippines or Vietnam as base storefronts, automatic price increases may occur, potentially affecting user acquisition due to higher costs displayed to users. ASO strategies should focus on:
1. Price Tier Optimization:
Review and adjust pricing tiers in App Store Connect to balance affordability and revenue. Higher prices may deter downloads in price-sensitive markets like the Philippines and Vietnam, so consider localized pricing strategies.
2. Subscription Stability:
Auto-renewable subscriptions are exempt from these price changes, offering a stable revenue stream. Developers should emphasize subscription models in their ASO metadata to highlight value and predictability.
Tax-driven price changes may alter how apps appear in different storefronts, impacting ASO performance. Developers must:
1. Update Metadata:
Ensure app descriptions and IAP details reflect accurate pricing and tax information, especially for the Philippines and Vietnam storefronts. Misaligned metadata can lead to user confusion and lower conversion rates.
👉 How to Maximizing App Metadata in App Store?
2. Localize for Compliance:
In Vietnam, games require a license from the Ministry of Information and Communications to remain on the App Store. Developers must include the license number and URL in the Vietnam storefront's product page description, requiring localized ASO efforts to maintain compliance and visibility.
👉 App Localization Guide to Expand Market Reach & Boost User Engagement
Apple's automated price equalization system adjusts prices based on exchange rates and taxes, but developers can override this for greater control.
Regularly monitor the Pricing and Availability section in App Store Connect to anticipate regional price changes and their impact on ASO metrics like conversion rates and user retention.
Manual price management allows tailored strategies for markets with high tax burdens, preserving competitiveness.
Apple's new tax and pricing updates, especially in the Philippines and Vietnam, will directly affect developer proceeds and user pricing.
While auto-renewable subscriptions remain stable, developers should reassess pricing tiers and localization strategies to balance revenue impact with user acquisition.
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