The creators of Youtube, those who are not from the United States might soon see 30% of their earning that is generated from the US viewers be held for tax. All the creators of YouTube have been asked to submit their tax information to determine if there is any tax incidence on their earning which has been generated from the US viewers and how much it might be? This has been implied starting June 2021 and all the creators under YouTube partnership program across the India and also across the whole world might get impacted on their earnings.
The Tax ranges from 0-30% which totally depends on the nature of the creator, individual or organization, also on the various tax treaties that the US has with different countries around the world. If the creator fails to submit the tax information that the US government has demanded, within the time frame provided, Google would assume the creator to be a US citizen and will charge him 30% tax of his total earning which would be big amount of his total earnings costing creator a lot. The Tax rate as per YouTube on the royalties for valid claims which is made under India’s tax treaty along with US is 15%. The same is set to be 0 for Canada and United Kingdom while it is set to be 10% for Mexico and South Korea.
Google officials said that Google has the authority under Chapter 3 of the US Internal Revenue Code to collect the tax information from the creator that are non-US citizens and are earning from the US viewers in the US. For example, if any India creator on YouTube is earning 100$ per month from YouTube partnership program for his content on YouTube, then he might get a Tax on his 10$ earning out of the 100$. That means only on the $10, the tax will be calculated which might differ from 0-30% depending in the nature of the creator, individual or a firm they might be. This revenue from the tax can be earned for any YouTube monetizing tool like super-chat or YouTube premium etc.
