YouTube will now be deducting United States federal income tax from creators who earn revenue from U.S.-based viewers through the YouTube Partner Program(YPP). The announcement comes after changes to Chapter 3 of the U.S. Internal Revenue Code – which requires international creators to be liable to tax deduction for revenue generated from U.S-based viewers. The taxable revenue will comprise Ad views, YouTube Premium, Super Chat, Super Stickers, and Channel Memberships.
YouTube revealed that US-based creators’ income will not be affected by the new announcement – since changes were already made in November:
“If you’re a creator in the U.S., we’ve already made this change to the Terms of Service in November. Most of you have already completed U.S. tax info in AdSense and won’t see any new taxes. Although some U.S. creators with incomplete tax info will need to re-submit their form. If you’re a U.S. creator, be sure to check that your info is complete in AdSense by following the steps here”.
Users that reside in countries with US tax treaties – however – will be subject to lower tax deductions.
YouTube creators are required to send their tax details on Adsense by March 31 2020. Failure to do so will lead to a 24% tax rate on the creators’ worldwide earnings.
To submit your tax information on AdSense, follow these steps: