✅ What Can a Permitted Deduction Include?
A Permitted Deduction may cover one or more of the following:
💸 1. Distribution Commissions
For using UMW’s technology, platform tools, and global distribution network
Predefined in your contract or subscription plan
⚙️ 2. Additional Service Fees
For editorial optimization, fraud protection, metadata corrections, royalty redirections due to disputes, etc.
Always shown in your royalty report for transparency
🌐 3. Transaction or Processing Costs
Banking fees, currency conversion costs, PayPal transaction charges, or other payout-related expenses
These may vary depending on the payout method or country
📐 How Is It Applied?
The deduction is applied as a fixed or variable percentage, as outlined in your agreement.
🔄 It is subtracted from the gross revenue, and the resulting amount becomes your net royalty income — the value shown in your dashboard as available for withdrawal.
📊 Practical Example:
Let’s say you earn $1,000 USD in a month:
📉 10% distribution commission = $100
💵 Net royalty balance = $900
This $900 is what appears as your available earnings (unless other legal withholdings apply).
🛡️ Why Is This Important?
Because it ensures:
✅ All deductions are clear, approved, and transparent
💼 You always know how much you’re receiving and why
📊 Your accounting reports reflect your real net income, not just gross estimates
🎯 In Summary:
Item | Is It a Permitted Deduction? ✅/❌ |
🏦 Bank transfer fees | ✅ Yes |
💼 Editorial or tech services | ✅ Yes |
🔄 Currency conversion | ✅ Yes |
❌ Unauthorized deductions | ❌ No (prohibited) |