YouTube will begin collecting taxes from all content creators outside of the United States who earn revenue from viewers in the United States or other YouTube-licensed countries. This new policy will go into effect on June 1, 2021.
Google AdSense has sent an email to all YouTube channel owners who monetize their videos, informing them that they must submit tax documents in order to determine the amount of taxes that YouTube will collect. Creators are encouraged to submit their tax documents as soon as possible, as YouTube will withhold 24% of their revenue from viewers worldwide if they do not submit their documents by May 31, 2021.
The amount of tax that creators will owe will vary depending on their country of residence. Creators who submit their tax documents before the deadline may be taxed at a lower rate, as low as 0%. The type of tax that will be collected is based on the revenue that is generated from viewers in the United States through ad views, YouTube Premium, Super Chat, Super Stickers, and channel memberships.
This new policy has been met with criticism from some YouTube creators, particularly those with small channels. They argue that the new policy will make it more difficult for them to earn a living from their videos. YouTube has stated that the new policy is necessary in order to comply with US tax law.
Watch the video to know how to enter the correct tax documents::
