Hundreds of thousands of content creators have received messages from YouTube indicating that the site's payment and tax policies have changed, and the message included that 24% of the content creator's income could be deducted for the US tax authority.
And published "Google" (Google), the company that owns the YouTube platform, on its help site, information about the new withholding tax policies, which will begin to be implemented.
And content makers must fill out their tax information so that Google can deduct the amounts due, starting from next June, which will include all content makers on its platform.
The company has warned that if it is not provided with tax information by May 31, 2021, Google must deduct up to 24% of the total content creator's profits worldwide.
Deductions include income from several sources;
These include ad views, YouTube Premium, Super Chat, posters and even channel memberships.
Google says that under Chapter 3 of the United States Internal Revenue Code, the company is responsible for collecting tax information, withholding taxes, and submitting a report to the Internal Revenue Service (IRS) - the US tax authority - when a co-creator checks The "YouTube Partner Program" royalties proceeds from viewers in the United States.
So if you're making money from viewers in the United States, Google may start with withholding taxes (what's known as withholding).
All content creators participating in the YouTube Partner Program must submit their tax information required in the United States to Google, regardless of their geographic location.
Google will be obligated under US tax law to deduct taxes from the profits it generates on YouTube that result from viewers in the United States, if applicable.
The American company says that the requirements for withholding tax may differ according to the country of residence, and whether you are eligible to request benefit from the benefits of tax treaties between countries, and whether you are an individual or represent a commercial activity.
For content creators outside the United States, if the US tax information is provided, the tax withholding rate will range between 0% and 30% of the profits they receive from viewers in the United States, and this percentage is determined according to whether a tax treaty is concluded between the country of the content maker and the United States.
As for content creators in the United States, Google will not withhold taxes on profits if they previously provided valid tax information.
Note that most creators in the United States have provided their tax information.
If the account of the activity is commercial, the automatic tax withholding rate imposed on profits in the United States is 30% if the activity is outside the United States. As for commercial activities in the United States, 24% of total profits are deducted around the world.
For individuals, reserve tax withholding will apply, and 24% of total profits worldwide will be taken.
Google stated that content makers can submit their tax information through the "AdSense" site.