It is obvious that Flappy Bird has brought big money to its father – Nguyen Ha Dong, a 29-year-old programmer. However, experts believe that it is Google which benefits most from the bird.
Being a free app, the only source of income for its author is from ads. Dong, like other developers, can make money by allowing AdMob (Google) to embed codes into the game to display ads on the screen.
Nguyen Anh Tuan, Director of ePi Technologies believes that the Dong’s bird can bring $50,000 a day or more with AdMob.
Supposed that 10 percent of the 50 million downloads (5 million) is the number players every day and that 0.4 percent of players (in ideal scenario) clicks the ads, then there would be 300,000 ad clicks every day.
If noting that Google pays $0.2 for every ad click on average in the US and UK, and $0.02 in Vietnam, the total income of the developer could be $60,000.
An expert, who asked to be anonymous, said he has doubts about the announced figure of $50,000. As for free game, Google earns 30 percent while developer 70 percent. Therefore, in order to get the net amount of $50,000 in account, the actual ad revenue must be much higher.
“Though Flappy Bird still cannot be compared with Candy Crush or Angry Birds, the apps which bring hundreds of thousands of dollars every day, the figure of $50,000 is unbelievable,” he said.
There has been no information about the tax sum Dong has to pay for his huge income. According to Dang Thi Binh An, Chair of C&A Tax Consultancy Company Ltd, Dong will have to pay the personal income tax.
Under the current laws, income earners have to declare their incomes and pay tax. The highest tax rate is 35 percent. If income earners set up businesses and do business through the legal entities, they also have to pay exercise tax, VAT and corporate income tax as well.
A high ranking official of the Ministry of Finance said the ministry is considering the case of Flappy Bird, affirming that Dong will have to pay the personal income tax.
However, he has revealed that the taxation would be designed in the way so as to encourage the developers.
He said that in other countries, in such preferential cases, taxation bodies would allow to deduct some reasonable expenses, such as the expenses on studying or researching, from the taxable income. It would be not difficult for taxation bodies to check the information about the developer’s income.
It is understood that the same preferences may also be applied in Dong’s case.
Dong, when answering the questions of the local press, affirmed that he will pay tax. But he said he is consulting with experts in order to minimize the relevant expenses.
However, Flappy Bird has brought big benefits not only to Dong. Forbes, in an article published some days ago, believed that Google is a big beneficiary from the Flappy Bird fever.
The Flappy Bird has encouraged thousands of other programmers to make apps and hope to make money from the ads on Google.