Search giant Google has announced a new policy that can be worrying for YouTubers in India and other parts of the world, as it requires creators outside of the US to pay additional taxes.
The policy will come into effect from June 2021.
However, US-based YouTubers will not be subjected to the new policy, said Google in an email to all YouTubers.
Here’s everything you need to know about Google’s new taxation policy.
Explained: Google’s New Taxation Policy for YouTubers
1. What’s Happening?
Creators outside of the US may begin to have tax deducted from their US earnings starting June 2021.
Google says that it has a responsibility to ‘collect tax information from all monetising creators outside of the US’ and will now deduct taxes when these creators earn income from viewers in the US.
These additional taxes will be applicable to all your US-based YouTube earnings, including “YouTube Premium, Super Chat, Super Stickers and channel memberships”, read a statement on Google support page.
Expand2. What Will YouTubers Have to Do?
Google will start asking for tax information starting 10 March 2021. Users can simply add details of their tax information by clicking on the AdSense account linked to their YouTube Channel.
Individuals will have to fill Form W-8Ben-and businesses will be required to fill Form W-8Ben-E.
Expand3. How Much Will YouTubers Have to Pay?
Taxation will depend on a few factors:
- If you submit the tax information form you will be applicable to pay taxes between 0-30 percent. In an example, Google clarifies that if you have a withholding rate of 30 percent and if you earn say $200 from US viewers then you’ll be liable to pay $60 every month.
- In case your tax forms are not submitted, Google will legally presume that you're a US-based YouTuber and the company will have to withhold 24 percent of your total earnings (not just your US earnings).
- Google has also requested all YouTube creators to provide tax information latest by 31 May 2021.
“Please submit your tax info as soon as possible. If your tax info isn’t provided by 31 May 2021, Google may be required to deduct up to 24% of your total earnings worldwide,” the company said in a blog post.
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)
Expand
What’s Happening?
Creators outside of the US may begin to have tax deducted from their US earnings starting June 2021.
Google says that it has a responsibility to ‘collect tax information from all monetising creators outside of the US’ and will now deduct taxes when these creators earn income from viewers in the US.
These additional taxes will be applicable to all your US-based YouTube earnings, including “YouTube Premium, Super Chat, Super Stickers and channel memberships”, read a statement on Google support page.
What Will YouTubers Have to Do?
Google will start asking for tax information starting 10 March 2021. Users can simply add details of their tax information by clicking on the AdSense account linked to their YouTube Channel.
Individuals will have to fill Form W-8Ben-and businesses will be required to fill Form W-8Ben-E.
How Much Will YouTubers Have to Pay?
Taxation will depend on a few factors:
- If you submit the tax information form you will be applicable to pay taxes between 0-30 percent. In an example, Google clarifies that if you have a withholding rate of 30 percent and if you earn say $200 from US viewers then you’ll be liable to pay $60 every month.
- In case your tax forms are not submitted, Google will legally presume that you're a US-based YouTuber and the company will have to withhold 24 percent of your total earnings (not just your US earnings).
- Google has also requested all YouTube creators to provide tax information latest by 31 May 2021.
“Please submit your tax info as soon as possible. If your tax info isn’t provided by 31 May 2021, Google may be required to deduct up to 24% of your total earnings worldwide,” the company said in a blog post.
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)