Google has 'Bad News' for YouTube Content Creators outside the US

Bad News for YouTubers outside the US
Bad News for YouTubers outside the US

Google the search engine giant, just Announced Bad News for YouTube Content Creators operating from outside the US. YouTubers outside the US, especially from India always has been so underrated in YouTube, now a new Policy will now affect the earnings too. Google in an email to all YouTubers informed 'that the YouTube Content Creators outside the U.S will now have to deduct the US Taxes from their monthly payments'

Previously, Adsence was taking 45% of the total of their monthly income from Content creators on YouTube, now it will deduct some more US Taxes from their total earnings, except users from the US. These additional taxes for YouTubers outside the US might start as early as June 2021.

Google in an official communication said, that those who will not submit their tax information by May 31st, 2021, on Adsence, Google may be required to deduct 24% of their total earning worldwide.

Does it mean I have to pay for earnings from users in the US?

Yes, the tax will be deducted from your earnings made by your viewers living inside the US as Ad Views, Super chats, Sponsorships, Donations, and YouTube Premium, etc. You won't need to pay tax for money that you earned from your viewers outside the US if you have provided the required tax information.

New Tax Rules for YouTubers outside the US
If not submitted Required Tax info Pay 24% of total Monthly earnings worldwide
if Submitted and is eligible for tax treaty benefit Pay 15% of monthly earning made from US audience
If submitted but is not eligible for tax treaty Pay 30% of the money made by the US audience

How much Does Indian YouTubers will require to pay according to the new YouTube Tax Rules?

Google with the help of a example explained that if a YouTuber Content Creator makes $1000 in a month, and out of which $100 is by the his audience from the US, the tax deducted will be:

  • If Creator has submitted Tax info: You'll have to pay $240 (24%) of the total earning you made in the month which is $1000 in our example. This means until Google has got complete info about your taxes, they'll deduct 24% of your total earnings made in a month from all Regions.
  • If Creator has submitted Tax info and is eligible for the treaty: The final deduction will be $15 (15%) of the total earning made by the US audience in that month which is $100 in our example.
  • If Creator has submitted the Tax Info but is not eligible for the treaty: Now, the Final deduction will be $30 (30%) of the total earning made from the US audience in that month.

 What Should you do?

If you are making money from YouTuber, you should submit all your required tax info and docs before that deadline, which is May 31, 2021. Visit Google Support Page for relevant tax info and docs.

You should note that if you did not submit your tax info to Google before the deadline, your tax rate will be 24% as default, meaning you'll have to pay 24% of your total earnings from all regions in the entire lifetime of that particular account, which is more unprofitable than paying 15 or 30% of earning made from US viewers.

So, what do you think, are the New Tax Rules Good, leave a comment down below:

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