YouTube has reportedly unveiled is its plans of deducting taxes from the earnings of content creators outside the U.S. from June 2021. The deductions will be made on the income made from viewers within the frontiers of the United States, cited sources close to the matter.
The Google-owned video streaming platform has reportedly informed its creators through an email, asking them to proceed with the submission of their tax information in Google AdSense, for the determination of the correct amount of taxes subjected to a deduction.
The new policy is applicable for all creators outside the United States and no such deductions will take place for those residing within the country, sources confirmed.
As stated by YouTube, Google is required to collect tax information from creators in the YPP (YouTube Partner Program). The company further stated that in case of applicability of tax deductions, Google will retain taxes on YouTube earnings from viewers in the United States from Super Chat, ad views, Super Stickers, YouTube Premium, and Channel Memberships.
Sources claimed that YouTube has created a video for explaining these new tax deductions, helping creators in the provision of their tax information. While the organization has tweeted the new rules via its social media channels, several creators have criticized YouTube for this move, given that it already takes a revenue cut from the ads that it serves on the platform.
The change is believed to largely impact small creators who do not have millions of subscribers for attracting sponsors for native advertisements.
YouTube has a 0-30 percent slab that it will be withholding of the earnings that are generated from U.S. viewers. The exact percentage will be dependent on whether the country of the creator holds a tax treaty relationship with the United States.
This means that there will be dissimilarity in the deduction of taxes for content creators in various countries.
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