YouTube is undoubtedly the fastest-growing digital content platform across the globe. The number of YouTube creators is increasing day by day. However, while creators are happy in the pursuit of making money, the company has announced the news of YouTube to deduct taxes from creators outside of the US. The action will implement by June 2021.
YouTube to Deduct Taxes from June 2021
Recently, the company sent an email to YouTube creators across the globe to submit their tax details to Google AdSense. This is because the parent company of YouTube, Google has the responsibility under Chapter 3 of the US Internal Revenue Code to collect tax information, withhold taxes, and report to the Internal Revenue Service when a creator earned royalty revenue from viewers in the US.
As per the official statement on the company’s support page, “If any tax deductions apply, Google will withhold taxes on YouTube earnings from viewers in the US from ad views, YouTube Premium, Super Chat, Super Stickers, and Channel Memberships”.
Deadline to Submit Tax Information
As per the email, YouTube has informed creators to submit their tax information in Google AdSense by May 31, 2021. Failing to provide the details by the given time will result in a deduction of up to 24% of the total earnings made by YouTube creators.
While this may be true, if the creators provide the details within the deadline period, there will be a withholding between 0–30 percent on the earnings they generate from viewers in the US. The withholding rates notably depend on whether the country of the creator has a tax treaty relationship with the US.
How to Submit Tax Details in Google AdSense?
- Sign in to your AdSense account.
- Click Payments.
- Click Manage settings.
- Scroll to “Payments profile” and click edit Edit next to “United States tax info”.
- Click Manage tax information.
- On this page, you’ll find a guide that will help you to select the appropriate form for your tax situation.
Will YouTube deduct taxes from YouTube creators in Pakistan?
Under US tax law, Google is required to withhold taxes when non-US creators earn income from viewers in the US. This means that all YouTube creators in Pakistan with viewership in the US will have to pay the taxes.
What happens if you don’t submit the tax details within the deadline period?
YouTube has informed creators to submit their tax information in Google AdSense by May 31, 2021. Failing to provide the details by the given time will result in a deduction of up to 24% of the total earnings made by YouTube creators.
When will YouTube start tax deductions from YouTube creators outside the US?
YouTube plans to implement the tax deduction process from creators outside the US starting from June 2021.