YouTube will start collecting taxes from creators outside the United States

A new update will enable YouTube to deduct up to 24% of creators' total revenue worldwide if they fail to provide their tax information.

YouTube will start collecting taxes from creators outside the United States

YouTube is starting to deduct taxes from creators outside the United States that they receive from viewers in the United States. The Google-owned company said in an email to the creators that the new policy would take effect in early June 2021. YouTube has also asked creators to submit their tax information in AdSense to "determine the exact amount of tax deductions." These changes apply to all creators outside the United States, including India. However, there will be no tax deductions for creators living in the United States.

In a support page, YouTube stated that its parent company, Google, has a responsibility to collect tax-related information, withhold taxes, and report domestic revenue when a creation occurs under Chapter 3 of the U.S. Income Tax Code. The car collected royalties from viewers in the United States. . This has resulted in new revenue tax requirements for YouTube.

The company says in its support page 
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,

YouTube has notified creators of the update and asked them to provide their tax information to their AdSense account as soon as possible. If a creator can't provide information by May 31, the company said it will need to cut its global revenue by up to 24 percent.

However, if a creator provides information about his tax, the audience in the United States will receive between 0-30% of the earnings. Withholding rates typically depend on whether the creator's country has a tax agreement with the United States. This means that tax deductions for creators in different countries will change.

For India in particular, the holding rate is set at 15% of the total revenue a creator receives from the US audience.

YouTube has created a video to help explain the change and provide creators with tax information. The company has also tweeted the new rules through its local social media channels.

Many creators are criticizing YouTube over planned tax cuts. This change also affects large-scale small creators who do not have millions of users to attract sponsors for local advertising.

When the creators reported a response to the criticism, a YouTube spokesman told Gadgets360 that the changes were in line with U.S. tax law.

The spokesperson said in an emailed statement. 

Under US tax law, Google is required to withhold taxes when non-US creators earn income from viewers in the US. We are asking creators to submit relevant tax information to determine whether any US withholding taxes apply and where applicable, we will withhold US taxes from creators' earnings beginning later this year,

YouTube offers creators monetization under the YouTube Partner Program, which requires at least 4,000 public watch times and more than 1,000 users in the creators' accounts in the last 12 months. Last year, however, the company updated its Terms of Service to run ads on videos created by small creators who are not part of the YouTube Partner Program and are not generating any direct revenue from the platform. ۔ The move also sparked outrage among creators who were not collecting any revenue from Google AdSense.


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