NEW YORK: Search giant Google has announced a new policy that can be worrying for YouTubers, as it requires creators outside of the United States to pay additional taxes.
Google will deduct about a quarter of your earnings, up to 24 percent to be precise, in withholding tax, the parent company of the world’s largest video-sharing website announced Thursday.
Under the US tax laws, YouTube is responsible for collecting tax information from all monetized content creators outside the US, and, in certain cases, deduct taxes where these creators generate income from viewers in the US. These earnings can come from ad views, YouTube premium, Super Chat, Super Stickers and channel memberships.
Google may begin withholding US taxes on earnings that you generate from viewers in the US as early as June 2021, the technology giant said, asking YouTubers to submit their tax forms in AdSense as soon as possible.
All monetizing creators on YouTube have to comply with it regardless of their location in the world. “If your tax information isn’t provided by May 31, 2021, Google may be required to deduct up to 24 percent of your total earnings worldwide,” it said.
Those who will submit their tax information by the given deadline will, however, be subject to reduced tax rates if their countries have a double tax treaty with the US, the company added.