Google recently announced the decision to cut 0 to 30 % tax from YouTube Content creator earnings. The tax rate will depend on content type and country. Read this article to know how much you have to pay.
Hey YouTube content creators! Google is going to roll out a new tax deduction policy soon. All content creators from India and abroad might have to pay tax cut from their earning after cutting Google percentage.
As we know, every YouTuber pays some percentage to Google by default. But soon, Google will collect tax from Non-US creators as per the USA’s policy by June 2021.Â
Surprisingly, US-based creators will not be going to pay this tax. This rule is for only creators based out of the USA.
Google appealed to all content creators worldwide who monetize their channel on YouTube to submit their tax details before 31 May 2021. Every content creator who is earning through YouTube is bound to submit his or her tax details on the due date.
Which content creators will pay taxes?
This rule is as per the USA government, so we need to understand that Google can only collect tax for the earning generated through US viewers and watch time.
Every YouTube content creator who has USA viewers on his or her channel will pay tax. This tax rate can vary as per the content creator’s country; therefore, few people will pay 0 %, and few will pay a maximum of up to 30%. You will not pay tax on earnings you make out of non-USA viewers.Â
How will YouTube tax calculation work?
Google said they would deduct tax on the content creator’s earnings due to citizen’s ad views, paid memberships, YouTube premiums, and other monetization. For example, if one content creator has 1000 ad views and out of those 1000 views, 500 are from the USA. Then that content creator will pay tax on earnings made out of those 500 ad views as earning is made in the USA.Â
If you have a business YouTube account, your tax can go up to 30%.
IF you have a personal YouTube account, your tax rate may go up to 24%.
Google stated that they would cut max 30 % tax if YouTube creator does not provide his or her tax information, so hurry up and file your tax details.
