YouTube is about to start deducting taxes from content creators outside the United States on the earnings generated from viewers in the United States.
In an email sent to creators, YouTube said it is possible the additional tax may come into effect in June 2021.
Also, YouTube requested that creators submit their tax information in AdSense “to determine the correct amount of taxes to deduct”.
The email read: “If your tax info isn’t provided by May 31st, 2021, Google may be required to deduct up to 24 per cent of your total earnings worldwide.”
The company on a support page stated that upon submission of US tax Information, withholding rates would be between zero and 30 percent of earnings generated from viewers in the United States and it would also depend on whether the creator’s country and United States had a tax treaty relationship.
YouTube revealed its parent company, Google, has the responsibility under Chapter three of the US Internal Revenue Code to collect tax information, withhold taxes, and report to the Internal Revenue Service when a content creator earned royalty revenue from viewers in the United States.