Google is now requiring creators under the YouTube Partner Program (YPP) to submit their tax info, even those from outside the U.S.
On Google’s support page, the company reveals that it “has a responsibility under Chapter 3 of the U.S. Internal Revenue Code to collect tax info, withhold taxes, and report to the Internal Revenue Service (the U.S. tax authority, also known as the IRS) when a YPP creator on YouTube earns royalty revenue from viewers in the U.S. If you have earnings from viewers in the U.S., Google may begin deducting taxes (known as withholding) as early as June 2021.”
If a creator doesn’t provide his/her tax info by May 31, 2021, Google may be required to deduct up to 24% of his/her total earnings worldwide.
For creators outside of the U.S., if you submit U.S. tax info, withholding rates are between 0-30% on earnings you generate from viewers in the U.S. and depend on whether your country has a tax treaty relationship with the United States. For creators in the U.S., Google will not withhold taxes on earnings if you have provided valid tax info. Most U.S. creators already have submitted their U.S. tax info.
For Business accounts, the default withholding rate will be 30% of U.S. earnings if the payee is outside of the U.S. Businesses in the U.S. will be subject to 24% withholding on total earnings worldwide. For the Individual account type, backup withholding will apply and 24% of total earnings worldwide will be withheld.
Here’s how to submit your tax info to Google.
1. Sign in to your AdSense account.
2. Click Payments.
3. Click Manage settings.
4. Scroll to “Payments profile” and click edit next to “United States tax info.”
5. Click Manage tax information.
6. On this page, you’ll find a guide that will help you to select the appropriate form for your tax situation.
Click here for more information.
