A check has been placed on the YouTubers outside the American region. Google has recently made a thunderbolt announcement for all YouTube creators, which might affect them heavily.
This subsidiary of google is no more tax-free. The worldwide tech giant stated that creators outside the US would be required to pay a sum of tax calculated and deducted through the sum of viewers from the United States. American creators, on the other hand, won’t have to take any part in this burden.
According to media communication, this tax deduction will be initiated and put into force as fast as June 2021.
About the workings of this tax, the money will be deducted in the form of tax through:
- Channel membership
- YouTube premium
- Super chat & stickers
- Ad views
Graciously, the YouTubers won’t have to pay tax for viewers outside the US, provided that they submit relevant tax documents to Google. If any such necessary communications are ignored, google will impose a 24% tax on the YouTuber’s total monthly earnings.
Additionally, the parent company of YouTube announced in an official press communication that all the documents required to be submitted for tax info need to be turned in by March 31, 2021. Otherwise, a default percentage of 24% tax will be deducted from the monthly earnings of the YouTubers, irrespective of their varied viewers from all parts of the world.
Thus, while a YouTuber outside the US will have to face 24% of tax on his/her monthly earning if he/she doesn’t turn in the documents by the due date, the creators who submit the tax Info and are eligible for a treaty benefit (that which India has with the US) will have to pay only 15% from their monthly earnings earned from US viewers.
However, if the creator does turn in the documents but is not eligible for the treaty benefit, then he is entitled to pay 30% of tax on his monthly earnings from American viewers.
So, if you are reading this article and currently a YouTube creator outside India, then you are highly advised to visit and go through Google’s support page for pertinent information on tax dates and documents.