YouTube will start deducting US taxes from creators outside the US.
YouTube would start deducting US taxes from creators outside the United States and creators were required to submit their tax info in Google AdSense.
YouTube made it fairly easy for creators with determination and talent in order to make some cash off of producing videos, and creators even managed to make a living off of the said platform.
In a report on 9to5Google, many creators may face issues as YouTube was preparing to deduct taxes for the United States for all creators this year — even those outside the region.
An email sent to YouTube creators who lived abroad notified them of a change to YouTube’s payments.
Apparently, Google was required to deduct taxes for the United States from all channels — even those owned by creators outside the United States. The email reads:
“We’re reaching out because Google will be required to deduct U.S. taxes from payments to creators outside of the U.S. later this year (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% of your total earnings worldwide.”
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The said change to how YouTube handled taxes came from the US government, specifically under Chapter 3 of the US Internal Revenue Code.
9to5Google also reported that Google had the responsibility to collect tax info from all monetizing creators outside of the United States and withhold taxes when income was earned from viewers within the United States, which means that not all income would be affected, but only that earned from viewers within the United States.
You can watch the video below:
Moreover, the said change won’t affect creators in the US but would affect the rest of the world.
YouTube needed updated tax info by the end of May 2021, otherwise, a default 24% cut would be made, which would be detrimental to creators who relied on the platform in order to make a living.
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