New Tax requirements for YouTube Creators
What is New Tax requirements:
Under Chapter 3 of the U.S. Internal Revenue Code, Google has a responsibility to collect tax info, withhold taxes, and report to the U.S. tax authority known as Internal Revenue Service (IRS). When Youtube creators earn revenue from viewers in the U.S, Google may begin deducting taxes (known as withholding) as early as June 2021.
In this new requirement, all monetizing creators on YouTube, regardless of their location in the world, are required to provide tax info. If your tax info isn’t provided by May 31, 2021, Google may be required to deduct up to 24% of your total earnings worldwide. However, if you submitted your tax info, you will only be deducted from your earning from the US viewers by 30%. This will apply to all youtube creator monetization outside the US.
The revenue can be from: ad views, Youtube premium, superchat, super stickers, and channel membership.
Where & How to fill the tax ?
You should fill the tax form at your google adsense account. Generally, for creator outside US would fill the form W-8BEN (for individual) or W-8BEN E (for business)
Tutorial how to fill the form:
How much will it be taxed from our youtube?
The tax deduction depends on:
- Whether you have submitted your tax form
- if you have submitted your tax form: You will be taxed by 30% from your US views earning
if you have not submitted your tax form before May 31, 2021: Google will be required to presume that you are a US person and will withould up to 24% of your total earnings worldwide (not just US earning).
- How much your channel earns from U.S Viewers
- How much earning that you get from US viewers. The earning can be from: ad views, Youtube premium, superchat, super stickers, and channel membership.
Whether your country has tax treaty with the U.S
- Check your country tax treaty with the US here: https://taxsummaries.pwc.com/united-states/individual/foreign-tax-relief-and-tax-treaties) If your country has a tax treaty with the US, your tax rate may be reduced. For instance, partners in the UK or Canada may be eligible to get 0% tax rate, while partners in Mexico and Korea are eligible to get 10% tax rate.