YouTube to deduct taxes from non-U.S. creators

YouTube to deduct taxes from non-U.S. creators.

YouTube to deduct taxes from non-U.S. creators. | Photo Credit: Reuters

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YouTube’s latest update may not be good news for non-U.S. creators as the video-streaming platform will start deducting taxes in US from them, beginning June 2021.

This means Indian creators making money from views in the U.S. will have to part with some amount in taxes. The additional tax will also apply to other creators who are not based in the US.

YouTube will deduct taxes not only from ad views, but also from YouTube Premium, Super Chat, Super Stickers and Channel Memberships. The streaming service platform explained that it has a responsibility under Chapter 3 of the U.S. Internal Revenue Code to collect tax information, withhold taxes, and report to the Internal Revenue Service a YouTube Partner Program creator on earnings from viewers in the U.S.

The company has asked all who make money from YouTube to submit their tax information “as soon as possible”. If they fail to provide the details by May 31, Google will deduct up to 24% of their total earnings worldwide. It noted that creators may be asked to re-submit tax information every three years.

“Under U.S. tax law, Google is required to deduct taxes from your YouTube earnings from U.S. viewers, if applicable,” YouTube said in a statement.

“The tax withholding requirements can differ depending on your country of residence, whether you're eligible to claim tax treaty benefits, and whether you identify as an Individual or a Business.”

YouTube has a tax slab of 0-30% on the earnings creators generate from the US viewers. The withholding rates depend on whether the country has a tax treaty relationship with the US. For Indian creators, the tax withholding rate on royalties is 15%.

YouTube also posted a video to explain the new deductions and how to fill the tax information form.

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Printable version | Feb 20, 2022 1:11:13 pm |