In an email that Google started sending it today, it announced that it would be required to cut US taxes from payments to YouTube content producers living outside the US. Tax information will be requested to identify people who are exempt from tax or have to pay a certain rate.
Announcing that it will send an e-mail on this subject in the coming days, Google stated that users who do not transmit tax information until May 31, 2021 may face deductions of up to 24 percent of YouTube earnings.
How will the taxation process work?
In the next few weeks, an email will be sent by YouTube to content creators to submit tax information to AdSense. The tax tool integrated into AdSense consists of 6 steps and includes a series of questions. The platform explains this kind of initiative as follows:
Google is responsible under section 3 of the US Revenue Act to collect tax information from all creators who make money outside of the US, and to deduct taxes in certain cases when they earn revenue from viewers in the US.
If YouTube creators’ videos are not viewed by viewers in the US, there will be no tax deductions. Earnings from the USA will be automatically taxed through AdSense.
The notification sent by Google is as follows:
Google will need to cut US taxes from payments to non-US content creators later this year (as early as June 2021). Over the next few weeks, we will ask you to submit your tax information to AdSense to determine the correct amount of tax to be deducted, if any. If your tax information is not provided by May 31, 2021, Google may need to deduct up to 24% of your total earnings worldwide.
In the next few weeks, you will receive an email to send your tax information to AdSense. The online tax tool in AdSense is six steps and will ask you a series of questions to guide you through the process of determining whether any US taxes are applicable. For more information on these changes and a list of tax information to prepare, visit our Help Center.
Google has a responsibility under Section 3 of the US Revenue Act to collect tax information from all creators who earn money outside of the US, and to lower taxes in certain cases when they generate revenue from viewers in the US.
For content creators outside of the US, we will soon update our Terms of Service, where your earnings from YouTube will be considered copyrighted from a US tax perspective. This can affect the way your earnings are taxed, and Google taxes will be reduced as required by US law.
How will my earnings be affected?
If you provide your tax information, US taxes can only be applied to your monthly US earnings from AdSense. (Revenue from viewers in the US through ad views, YouTube Premium, Super Chat, Super Stickers, and Channel Memberships). If no tax information is provided, your tax rate may be based on the default higher individual backup withholding rate (24% of total earnings worldwide).