FP TrendingMar 11, 2021 13:44:44 IST
YouTube is now going to deduct tax from content creators residing outside of the US on the earnings they generate from viewers on the popular video platform. The new norm will roll in with the new policy going into effect from as early as June this year. The Google-owned company has already sent out letters to creators, asking them to submit their tax information soon. This rule will be applicable for all YouTubers around the world, including those from India. However, the creators living in America will not be a part of this policy.
You may begin to have taxes deducted from your U.S. earnings later this year. These are earnings from viewers in the U.S. through ad views, YouTube Premium, Super Chat, Super Stickers, and Channel Memberships. pic.twitter.com/EbWIMqJRPf
— YT Creators India (@YTCreatorsIndia) March 10, 2021
According to a forum page of YouTube, the creators will have to submit their tax information in AdSense so that the firm can determine the correct amount of taxes to be deducted. A warning message on the support page also says that if a creator does not provide their tax information till 31 May 2021, “Google may be required to deduct up to 24 percent of [their] total earnings worldwide”.
Find out more, including the factors that affect how much you might be taxed, in this video → https://t.co/Ot1JZdeFpL
— YT Creators India (@YTCreatorsIndia) March 10, 2021
The message further says that a creator in the US can check their tax info in their AdSense account to be sure if they have already submitted their tax data. The page also explained that YouTube’s parent organisation, Google was required to collect tax information from creators as part of the YouTube Partner Program (YPP) by adhering to Chapter 3 of the US Internal Revenue Code.
The blog went on to mention that if tax deductions did apply, Google will be withholding taxes on YouTube earnings from viewers in the US. These earnings could be from YouTube Premium, ad views, channel memberships, super chat, super stickers, among others.
The official Twitter handle of YT Creators India explained the impact of the new policy on Indian creators outside the US.
As per the thread, how much a creator is going to be taxed will depend on a number of variables, like they have submitted a valid tax form, and how much they earn from US viewers. For India, the tax withholding rate on royalties is 15 percent.
