Amritsar, NFA Post: Google-owned online video-sharing platform YouTube has announced that it will start deducting taxes from creators outside the US, on the earnings they make from viewers in the US.
YouTube has asked creators to submit their tax information in Google AdSense “to determine the correct amount of taxes to deduct.”
YouTube, on its support page, said that its parent company Google is responsible under Chapter 3 of the US Internal Revenue Code to collect tax information, withhold taxes, and report to the Internal Revenue Service when a creator earns royalty revenue from viewers in the US.
This has resulted in the implementation of the new tax requirements for YouTube earnings, it added.
“Google is required to collect tax info from creators in the YouTube Partner Program (YPP). If any tax deductions apply, Google will withhold taxes on YouTube earnings from viewers in the US from ad views, YouTube Premium, Super Chat, Super Stickers, and Channel Memberships,” the company said.
YouTube has given creators a deadline of May 31 to upload their tax information on AdSense. Failure to do so might result in a deduction of up to 24% of the total earnings worldwide.
Youtube has a slab of 0-30% that it will withhold of the earnings generated from US viewers. The exact percentage will depend on whether the country of the creator has a tax treaty relationship with the US, the company said.
Specifically for India, the withholding rate is set at 15% of the total earnings a creator gets from viewers in the US.
YouTube has also created a video to explain these new tax deductions and help creators provide their tax information. The company has also shared about the new rules through its social media channels.
📣 Attention creators!
If you’re a monetizing creator outside of the U.S., like India, important tax changes are coming later this year that may affect your YPP earnings ⚠️
Find out what’s happening, and what you need to do, below ⬇️
— YT Creators India (@YTCreatorsIndia) March 10, 2021