YouTube Will Begin Withholding U.S. Income Tax From Revenue Earned By International Creators
https://www.tubefilter.comIn the coming months, YouTube will begin deducting United States federal income tax from all creator revenue generated by U.S.-based viewers.
New changes to Chapter 3 of the U.S. Internal Revenue Code–the chapter that governs “withholding of tax on nonresident aliens and foreign entities”–require that YouTube preemptively withhold taxes from any creator in the YouTube Partner Program who earns money via U.S. residents, the platform says.
This means that any U.S.-based AdSense, YouTube Premium, Super Chat, Super Stickers, and Channel Memberships will be taxed at U.S. rates.
How much will creators be taxed? That depends on their individual circumstances. YouTube is asking that creators send in their tax information by May 31, 2021, so it can determine how much tax to withhold.
If creators don’t send in their tax information by that date, YouTube will deduct 24% of worldwide, not just U.S.-based, earnings.
