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US Residents only rule

A topic by 0xNil created 34 days ago Views: 848 Replies: 21
Viewing posts 1 to 9

Hello.

I wanted to ask is the "Participants should be in the US only" rule is strict. I understand it's for tax-related stuff, but is it ok for countries like France. What if only 1 member in the team is in the US ? It there any way to make it accessible for developers outside the US ?

Thanks by advance !

please allow participation if not prize eligible is ok.

Host(-2)

Hi DistortCubic! We do allow non-US participants to join the jam and make a game, but they will not be eligible to win the prize due to the varying contest laws in countries outside of the US.

So if a team of mostly US participants and 1 person outside of the US wins, does that disqualify everyone from the money?

(+2)

The jam is currently US-only, especially for legal and tax reasons. However, there may be a relatively low-risk way to expand participation internationally without significantly increasing complexity.

From a tax perspective, international payouts are already standard for US companies:

  • Non-US winners can submit a W-8BEN form, which in many cases reduces US withholding tax to 0% under tax treaties (including most EU countries).
  • Prize taxes are then handled locally by the recipient in their country, not by the organizer.
  • Cash prizes are generally not subject to VAT in the EU, since they are not payments for goods/services.

In addition, you own 2020 jam's rules already state that “all federal, state, and local taxes… are the responsibility of the winner”.

That change would significantly expand your pool of high-quality submissions, and make the jam open for everyone.

(+1)

After some additional researches :

- The high amount of the prizes doesn’t introduce new tax constraints, only standard KYC and reporting requirements, which are already handled in international payouts.
- The United States already has tax treaties with the vast majority of developed countries, including almost all of Europe and major game development hubs worldwide.

Because of that, eligibility could be extended to non-US participants who :
- reside in a country with a US tax treaty
- can provide a valid W-8BEN (or W-8BEN-E)
- agree that all local taxes are their responsibility

You can find a complete list of eligible countries here : https://www.irs.gov/individuals/international-taxpayers/tax-treaty-tables.

This framework is already used by many game jams.

Thank you for considering our request.

Host(-2)

Hi 0xNil! Thank you for taking the time to do research for this - we have had a lot of questions regarding the US only rule and we would like to make some clarifications.

To win the prizes for the game jam, developers must be a US-residents. However, non US-residents are allowed to participate in the jam, but they will not be eligible to win the prize. This is due to each country having different laws regarding contests.

When you say prizes, you mean "cashprize" ? What happens if a non-US developer win the jam ?

Host(-2)

Hi 0xNil - Yes, we mean the cash prize.

When the submission period is open, there will be a question that asks the developer for their country of residence. If the game is very polished and something we would be interested in having on the site, we will speak with the developer to offer a potential license that is not part of the contest.

We have worked with international developers before when licensing games for our site, as these are one time payments we make for licensing. The reason why this contest only allows US-residents to win is due to contest rules being different in each country which can cause complexity.

Thank you very much for taking the time to answer me.

I totally understand. All of the rules are very complex, and would need too much time to take it all in account.

I just wondered if the solution I gave in my next comment can fit your structure.

Submitted

Thanks for the answer. All I need is the place to make games, and see others doing their own games. So happy to join this Jam even without the prize

Hey, I'm a US citizen, but I live abroad (Japan). From what I understand, this is a tax based issue? If so, I should be eligible since my tax filing is identical to any other US citizen, right? I also have a US address, but am not sure if that qualifies me as a "resident" since I'm currently studying abroad, so not actually "living there". I plan on entering either way, but figured it was better to clarify earlier rather than later. 

Thanks for the clarification, that makes sense regarding different contest laws.

One possible way to reduce this complexity while still allowing international prize eligibility could be to include a standard clause like : “Void where prohibited by law.”

This is commonly used in international competitions to avoid having to comply with every jurisdiction individually, as participants from restricted regions are automatically excluded. This could significantly reduce legal risk while expanding access to international developers.

I'd accept 10 $1k amazon gift cards if that's easier ( ͡° ͜ʖ ͡°)

Mabye, but that's not a good way. Most participants don't spend thousands of dollars in Amazon, and it's not easy to convert them into something else.

what about Canada? 

yes, bro, me too wondering?

Wait so as a non US citizen, I can still join, just if I win I won't get any prize money?
If that is the case, I'd be happy to join :)

yes that's it

See, this is where it gets confusing. The jam host also said this, and I quote: "All entrants in the team must be US residents. If a team is selected as a winner, they will have to sign an affidavit and tax documentation, which is why the contest is for US residents only."

Yeah I think I'm even more confused now

That was the old rules, a few weeks ago.

To quote Coolmath Games in this thread :
"To win the prizes for the game jam, developers must be a US-residents. However, non US-residents are allowed to participate in the jam, but they will not be eligible to win the prize."