Nowon Youtube will deduct taxes from earnings generated by U.S. viewers – According the new policy, YouTube will deduct taxes from creators outside of the US. The policy will be applied from June 2021. They have said through an email sent to all the creators that the tax will be deducted from the earnings they generate from the US viewers. The company has also informed that the creators have to submit their tax information in Adsense to determine the exact amount of taxes to deduct. The new policy is for everyone except the US. The tax deduction is not similar to the US-based creators.
YouTube on its support page said that Google has the sole responsibility under chapter 3 of the US Internal Revenue code to collect all the tax information, withhold taxes and report to the Internal Revenue Service from the creators who are earning royalty from the viewers of the US. So the new tax requirement has to come into being for YouTube earning.
The company added in its support page that Google will withhold taxes from the ad views, Super Chats, YouTube Premium, Super Stickers, and Channel Membership as soon as the tax deduction is applied.
YouTube will deduct taxes from creators outside the U.S.
The Google-owned company youtube has already mailed to all the creators, be it small or big channel, to provide their tax information in the Adsense section before May 31. Otherwise, the company will deduct 24% of their total earnings which can be a big concerning the matter to the creators.
If the tax information is provided correctly, a creator will see a withholding between 0%-30% on the earnings they get from the viewers, living in the US. The rates wholly depend on the relationship between the country and the US. So, the amount of tax may vary from one creator to another depending on the country they live in.
India is set to 15% withholding rates of the total earnings from the US viewers. There is an explainer video that has been created by YouTube to make the tax information submission process understood by every creator easily. They have also shared a post about this on Twitter.
Many creators are throwing furious comments on the new tax deduction policy. As we all know that YouTube already deducts a portion of the revenue from the ads. This new policy will affect the small creators on a large scale that don’t have millions of subscribers. It will be more difficult than before to attract new sponsors.
The spokesperson elaborated that Google requires to withhold taxes on the earnings of Non-US creators under the US tax law. The company is asking every creator to submit the tax information to decide whether the US withholding taxes apply or not and if it is applicable, Google will withhold taxes from all the non-US creators. The policy will start beginning later this year.
YouTube has a policy under its partner program. If a creator has 4000 public hours and 1000 subscribers, she/he can apply for the monetization. Last year creators who don’t have YouTube partner program subscriptions saw a big change in its terms and condition. Youtube creators aren’t earning any direct amount from the platform. It is obvious to get angry with the policy as they aren’t generating any Google Adsense revenue. Now, it is time to see how the new policy works in the future.