Google says it’s time to know your tax laws, YouTube creators

YouTube creators outside the United States will have to review their taxes and submit the information by May 31 if they hope to avoid a 24% cut in income. This is based on a recent report by 9to5Google, detailing the new rules in force. These rules, in layman’s terms, require the company associated with Google to charge a tax on money earned on the platform. Specifically, this is generated by the content creators on the premium streaming platform outside the United States.

How exactly does a tax on YouTube creators outside the United States work?

Google reportedly contacted these YouTube creators about the tax change via email. The company says tax information will need to be submitted in AdSense to determine the appropriate deductions. It is if everything applies. Otherwise, Google will effectively be forced to take 24% of a YouTuber’s full income in the world.

Google’s responsibility for taxing creators on YouTube stems from Chapter 3 of the US Internal Revenue Code. But that doesn’t mean that all taxes should be levied at such a high rate. Those who submit their tax information might see much smaller pay cuts.

Your regional laws will make the difference

In the Google example, on the corresponding support page, the company uses a hypothetical YouTube creator from India. If a creator in the region makes $ 1,000 a month, he says, and only $ 100 came from American viewers, the taxes might be applied differently. The final deduction for a YouTuber who does not submit tax information would be $ 240 due to the 24% rate. For whoever does, only US earnings would be calculated. In this case, the creator would only pay $ 15.

The sum of $ 15 in the example of the search giant, however, is totaled due to a tax treaty between India and the United States. This means that taxes will have a different impact on creators depending on their region. In the example of India, the convention results in a tax rate of only 15% of the income of viewers based in the United States.

Without the tax treaty, for example, Google says the deduction would be $ 30 for that month’s income generated by the popular app. This is as opposed to the rate without tax information submitted.

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