YouTube is set to start deducting taxes from creators outside of the United States on the earnings they generate from viewers in the US.
The company said in an email to creators that the additional tax may come into effect from June 2021.
YouTube also asked creators to submit their tax information in AdSense “to determine the correct amount of taxes to deduct”.
“If your tax info isn’t provided by May 31st, 2021, Google may be required to deduct up to 24 per cent of your total earnings worldwide,” the email read.
On a support page, the company stated that upon submission of US tax info, withholding rates would be between zero per cent and 30 per cent on earnings generated from viewers in the US and also depended on whether the creator’s country had a tax treaty relationship with the US.
YouTube said its parent company Google had the responsibility under Chapter three of the US Internal Revenue Code to collect tax information, withhold taxes, and report to the Internal Revenue Service when a creator earned royalty revenue from viewers in the US.
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