Submit tax information by May for reduced rates
If you are a YouTuber and your channel is monetized, Google will deduct about a quarter of your earnings, up to 24% to be precise, in withholding tax from June, 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.
Creators outside of the U.S. may begin to have taxes deducted from their U.S. earnings. These are earnings from viewers in the U.S. through ad views, YouTube Premium, Super Chat, Super Stickers, and Channel Memberships pic.twitter.com/6ecEoCzHJ6— YouTube Creators (@YouTubeCreators) March 9, 2021
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% 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 (you can check it here), it said without specifying what the lower rate would be.
You shouldn’t worry much if your channel is not monetized, but if it is and you are earning from each of the above revenue streams, you need to submit your tax form in the AdSense by following these steps.
If you have more questions, you may be able to find their answers on Google’s Frequently Asked Questions (FAQ) page here.
We have some queries about this too, which we have shared with Google. We will add its response when it arrives.