YouTube creators not living in the United States will be taxed starting June according to the announcement of its owner, Google.
In an email to Youtubers, Google said that it will deduct taxes from payments to creators outside of the US. The additional tax for non-US-based creators is going to be levied on them by as early as June 2021.
“Over the next few weeks, we’ll be asking you to submit your tax info in AdSense to determine the correct amount of taxes to deduct, if any apply. If your tax info isn’t provided by May 31st, 2021, Google may be required to deduct up to 24 percent of your total earnings worldwide,” Google said in the email.
This means that online creators must submit their tax information before May 31st or else Google will charge them up to 24 percent of their earnings.
If the creator in India for example submits tax info and claims a treaty benefit, then the final tax deduction is $15.
“This is because India and the US have a tax treaty relationship that reduces the tax rate to 15 percent of earnings from viewers in the US,” YouTube said.
If a creator will not be eligible for the tax treaty benefit, then he or she will have a deduction of $30.
“This is because the tax rate without a tax treaty is 30 percent of earnings from viewers in the US,” the company said. (TDT)