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Google explains how it will tax YouTubers

Tax to be applied from June

SAMAA | - Posted: Mar 24, 2021 | Last Updated: 2 months ago
SAMAA |
Posted: Mar 24, 2021 | Last Updated: 2 months ago

On March 11, Google announced it would start deducting up to 24% withholding tax on revenues of YouTubers outside America. This will be applied in June on earnings that come from viewers based in the US. The new policy applies to all channels that are monetized—-those that are making money from ad views, YouTube premium, Super Chat, Super Stickers, and channel memberships. This news didn’t go down well with the YouTube community because the American audience accounts for the second-highest Revenue Per Mile (RPM), a metric to determine how much money a channel makes on every 1,000 views. Since Pakistani YouTubers’ RPM from the American audience is approximately $14, taxing it will shrink their earnings so we asked the internet giant some questions including whether the tax will be applied on gross revenue or net revenue. Watch the video to know what Google has to say about it.

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