YouTube to tax content creators outside US from June
It’s bad news for YouTube content creators and talented video producers all around the world, including India.
Google-owned YouTube has announced it will deduct taxes from payments to creators outside of the US.
In an email to YouTubers, the tech giant said that additional tax for non-US-based creators is going to be levied on them by as early as June 2021.
“Over the next few weeks, we’ll be asking you to submit your tax info in AdSense to determine the correct amount of taxes to deduct, if any apply. If your tax info isn’t provided by May 31st, 2021, Google may be required to deduct up to 24 per cent of your total earnings worldwide,” Google said in the email.
The move is likely to hit the YouTube creators’ community hard.
YouTube has asked creators to submit their tax information to AdSense to understand the correct amount of taxes to be deducted.
How much tax will be deducted from content creator’s earnings will depend upon a number of factors.
The tax rate is expected to be up to 24 per cent of total earnings worldwide if a creator does not submitted tax info.
“This means that until the creator submits complete tax info, we’ll need to deduct up to 24 per cent of their total earnings worldwide, not just their US earnings,” YouTube said on its support page.
If the creator submits tax info and claims a treaty benefit, then the final tax deduction is $15.
“This is because India and the US have a tax treaty relationship that reduces the tax rate to 15 per cent of earnings from viewers in the US,” YouTube said.
If a creator submits tax info but is not eligible for a tax treaty benefit, then the final tax deduction will be $30.
This is because the tax rate without a tax treaty is 30 per cent of earnings from viewers in the US.
Google will also levy taxes on YouTube earnings from viewers in the US on not just ad views, but also on YouTube Premium, Super Chat, Super Stickers and channel memberships.
An email going out to YouTube creators notifying about the payments read: “We’re reaching out because Google will be required to deduct U.S. taxes from payments to creators outside of the U.S. later this year (as early as June 2021). Over the next few weeks, we’ll be asking you to submit your tax info in AdSense to determine the correct amount of taxes to deduct, if any apply. If your tax info isn’t provided by May 31st, 2021, Google may be required to deduct up to 24% of your total earnings worldwide.”
Soure from – https://www.khaleejtimes.com/