YouTube previously announced that it has begun taxing YouTube creators in the US. Content producers outside the United States will also start paying taxes, according to YouTube’s notification to content producers today. To determine the correct amount of tax to be deducted, YouTube will ask creators to submit their tax information to AdSense within a few weeks.
How will the YouTube tax process work?
In the next few weeks, an Email will be sent by YouTube to the creators so that you can submit tax information to AdSense. The tax tool integrated into AdSense consists of 6 steps and contains a series of questions. YouTube explains such an initiative as follows; Google’s responsibility under section 3 of the US Revenue Act is to collect tax information from all creators who make money outside of the US, and to deduct their taxes in certain circumstances when they generate revenue from viewers in the US.
In addition, YouTube creators who do not submit tax information by May 31, 2021 may be required to deduct a fee of up to 24 percent of their total earnings. It is stated that if YouTube creators’ videos are not viewed by viewers in the US, they will not be subject to tax cuts. Earnings from the US will be automatically taxed through AdSense.