https://9to5google.com/2021/03/09/youtube-tax-us-change/ [cropped-ne] Switch site * Exclusives * Pixel + Google Pixel 3a + Google Pixel 4 + Google Pixel 4 XL + Google Pixel 4a + Google Pixel 5 * Nest + Google Nest Hub + Google Nest Hub Max + Google Nest Mini + Google Nest Audio + Google Home Max + Google Nest Wifi + Google Wifi + Nest Thermostats + Nest Cam + Nest Hello + Nest Protect * Android + Android 11 + Auto + Wear OS + Samsung + OnePlus + LG + Motorola * Google TV + Android TV + Chromecast + Chromecast with Google TV * Chrome * Stadia * Workspace + Gmail + Google Meet + Google Chat + Google Calendar + Google Docs + Google Drive + Google Keep * YouTube * Alphabet + Waymo + Verily Life Sciences + DeepMind + Google Ventures + Google Fiber + Access & Energy + Calico * Videos * Reviews Toggle main menu More social networks Submit a Tip / Contact Us Trade In Toggle dark mode Search [ ] Search Toggle search * 9to5Mac * 9to5Toys * Electrek * DroneDJ * Space Explored * About Today YouTube will start deducting US taxes from creators who don't live in the US Ben Schoon - Mar. 9th 2021 11:00 am PT @NexusBen [youtube_android_explore_1] 0 * Facebook * Twitter * Pinterest * LinkedIn * Reddit * YouTube makes it fairly easy for anyone with talent and determination to make some cash off of producing videos, and many even manage to make a living off of the platform. This year, though, many creators may face issues as YouTube is preparing to deduct tax fees for the US for all creators, even those who don't live in the region. [INS::INS] An email going out to YouTube creators who live abroad today notifies of a change to YouTube's payments. Apparently, Google is now required to deduct taxes for the United States from all channels, even those owned by creators who don't reside in 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. This change to how YouTube handles taxes comes from the US government, specifically under Chapter 3 of the US Internal Revenue Code. Google has the responsibility to collect tax info from all monetizing creators outside of the US and withhold taxes when income is earned from viewers within the US. That means that not all income will be affected, but only that earned from viewers within the United States. A brief video from YouTube explains all of the changes. On a support page, Google also clearly outlines an example of this impact. Example: A Creator in India earns $1,000 in revenue from YouTube in the last month. Of the $1000 in total revenue, their channel generated $100 from U.S. viewers. Here are some possible withholding scenarios: + Creator doesn't submit tax info: Final deduction is $240 because the withholding tax rate if you don't submit a form is up to 24% of total earnings. This means that until we have your completed tax info, we'll need to deduct up to 24% of your total earnings worldwide - not just your U.S. earnings. + Creator submits tax info and claims a treaty benefit: Final tax deduction is $15. This is because India and the U.S. have a tax treaty relationship that reduces the tax rate to 15% of earnings from viewers in the U.S. + Creator submits tax info, but is not eligible for a tax treaty: Final tax deduction is $30. This is because the tax rate without a tax treaty is 30% of earnings from viewers in the U.S. This change won't affect creators in the United States, but will affect the rest of the world. YouTube needs updated tax info by the end of May, otherwise a default 24% cut will be made, which, obviously, would be detrimental to many who rely on the platform to make a living. More on YouTube: * YouTube tests comment section redesign with quick reply tweaks on Android * YouTube Analytics adds 'new' and 'returning viewer' metrics * Google Discover starts surfacing YouTube content in 'Short videos' carousel FTC: We use income earning auto affiliate links. More. --------------------------------------------------------------------- Check out 9to5Google on YouTube for more news: You're reading 9to5Google -- experts who break news about Google and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Google on Twitter, Facebook, and LinkedIn to stay in the loop. Don't know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel Guides YouTube YouTube YouTube is Google's massive video streaming platform, accepting videos from creators large and small About the Author [53c3eccb0d] Ben Schoon @NexusBen Ben is a writer and video producer for 9to5Google. 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