YouTube Content Creators outside US might have received this email “[Important] Upcoming Tax Changes to Your YouTube Earnings”. Following is the content of the email:
“We’re reaching out because Google will be required to deduct U.S. taxes from payments to creators outside of the U.S. later this year (as early as June 2021). Over the next few weeks, we’ll be asking you to submit your tax info in AdSense to determine the correct amount of taxes to deduct, if any apply. If your tax info isn’t provided by May 31, 2021, Google may be required to deduct up to 24% of your total earnings worldwide.
What do I need to do?
In the next few weeks you will receive an email to submit your tax information in AdSense. The online tax tool in AdSense is six steps and will ask you a series of questions to guide you through the process to determine if any U.S. taxes apply. For more information on these changes and a list of tax info to prepare, visit our Help Center.
Why is this happening?
Google has a responsibility under Chapter 3 of the U.S. Internal Revenue Code to collect tax info from all monetizing creators outside of the U.S. and deduct taxes in certain instances when they earn income from viewers in the U.S.
For creators outside of the U.S., we will soon be updating our Terms of Service where your earnings from YouTube will be considered royalties from a U.S. tax perspective. This may impact the way your earnings are taxed, and as required by U.S. law, Google will deduct taxes.
How will my earnings be impacted?
If you provide your tax info, U.S. taxes may only be applied to your monthly U.S. earnings from AdSense (revenue earned from viewers in the U.S. through ad views, YouTube Premium, Super Chat, Super Stickers, and Channel Memberships). If no tax info is provided, your tax rate may default to the higher individual backup withholding rate (24% of total earnings worldwide). To estimate the potential impact on your earnings follow these instructions.
The YouTube Team”
I uploaded a video with same title yesterday. I filled in the tax form. However, this is updated version. The old video has been deleted. More than views and watch time, I’m concerned about providing correct information to all my students to the best of knowledge. There is buzz as we speak. Let see what comes next.
This is step by step guide to submit and fill in tax form (New Requirements for adsense/ youtube content creators who have monetized their channels).
All steps are correct except one crucial information that was optional but we missed. Tax Identification Number (TIN) is CNIC for Pakistan and I think PAN for India. Please consult your local tax advisors. They are the masters of the field. Fill in your name, select individual, non citizen, permanent address, mailing address (if different)…
We have time till May 2021. We can easily submit new form. Tax policies , all over the world, are being revised. Try to be crystal clear. Do not hide behind any sort of curtains. If you’re earning online, let your government/s know the means and resources (platforms etc). No harm in it. It’s in our favor.
Accept my apologies (if you think it’s needed).