Making money from YouTube will also not be easy. The company plans to implement the new policy soon. Google told YouTubers via email that from now on you will have to pay US tax on the earnings from YouTube videos. However, the new rule will apply to content creators outside the US. It will have no effect on American YouTubers. This tax can start from June 2021.
9 to 5 Google said in its report that Google said in its official communication that, in the last few weeks, we will also ask you for information on filing taxes in AdSense, so that the correct amount can be cut. If your tax information is not available by 31 May 2021, the company will deduct up to 24% of your total earnings.
Understand By Example:-
Suppose a creator earned $ 1,000 (about 73 thousand rupees) from YouTube last month, and out of this total gross of $ 1,000, the channel has generated $ 100 (about 7300 rupees) from American viewers. So there can be three possibilities …
- If the Creator does not provide tax information
Like the company said in the email that if the information is not given, it will be cut by 24% of the total revenue from the world. That is, $ 240 (about 18 thousand rupees) will be deducted as a tax on the total earnings of $ 1,000 (about 73 thousand rupees) for not giving information.
- Creator gives tax information and claims tax treaty
In this case, the final deduction would be $ 15 (about 1100 rupees), because there is a ‘tax treaty relationship’ between India and the US, which reduces the tax rate by 15% in earnings from American viewers.
- If the Creator gives tax information and is not eligible for treaty benefits
In this case, the final deduction would be $ 30 (about Rs. 2200). This is because the tax rate without tax treaty Accounts for 30% of audience earnings.
Tax will be levied only on earnings from American viewers
The thing to understand for the users here is that, these money will also include the portion that you have earned from advertising and American users. The list also includes YouTube Premium, Super Chat, Super Stickers and Channel Memberships. The company said that, if you give complete information in the tax document, then you will be taxed on the earnings from viewers outside the US.