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.
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 [they’re] total earnings worldwide”.
The message further says that a creator in the US can check their tax info in their AdSense account to ensure they have already submitted their tax data. The page also explained that YouTube’s parent organization, 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 mentioned that if tax deductions did apply, Google would 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 new policy’s impact on Indian creators outside the US.
As per the thread, how much a creator will be taxed will depend on several 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.
