Earning money from YouTube will not be as easy as before. Actually, YouTube is now preparing to collect the tax. Due to which the earnings of YouTubers will be seen a decline. Although YouTubers of America were relieved in this, YouTube tax will be collected from YouTube creators outside the US.
YouTube is bringing its new policy. The new policy will come into effect from June 2021. Google-owned company YouTube has sent an email to its creators and has given information about the new policy in it. In this email, the company has asked its creators to provide their tax information in AdSense as well.
The company says that if creators outside the US earn from American viewers, then they will have to pay tax. However, this rule will not be applicable to the creators present in the US. On the support page of YouTube, it has been said that according to chapter three of the US Internal Revenue Code, the parent company can get information related to Google Tax.
What if tax information is not given?
Now if any YouTuber earns from the viewers of America, then he will have to pay tax and the information related to it will be given to the company US Internal Revenue. Due to this, the new tax system is being implemented. At the same time, YouTubers are being given information related to this and it is being said that if a creator does not give information till May 31, 24 per cent of his worldwide earnings can be deducted through the company.
At the same time, after giving its tax information to the company by the creators, the company will keep 0-30 percent of its US viewers’ earnings withholding. At the same time, the threshold rate depends on how the tax treaty of the creator country is with the US, that is, the different tax will be deducted according to each country.
The withholding rate in India is 15% of the revenue earned from US viewers. However, creators have strongly opposed the new policy of YouTube. And many have criticised YouTube on social media.