Becoming a YouTube influencer with large no. of subscribers has become an alternate career for many people and a good source of income too. Up until now there was no rule to pay any taxes for youtubers.
Now, Google has announced that it will collect 24 to 30 per cent tax every month from the makers of YouTube in other countries of the world, including India. The tax will be on the income generated by the American people viewing YouTube content.
Google warned in an e-mail, "As of May 31, 2021, if you tube creators do not provide their tax information, then 24 percent of the total income from the content will be deducted as tax. According to the new rule, tax will be deducted from people earning from YouTube every month.
The deduction of tax from the income of YouTube content creators will depend on certain factors. External creators apart from the US will have to give their information related to tax, then the content viewed by the American people can be taxed at the rate of 0 to 30 percent.
In such a situation, where you create such content which most of the people who see it are in America, then you will have to get ready for tax deduction. If there is a tax relief treaty between the US government and the government of the country of the relevant YouTuber, then it will also be applicable and will have to pay less tax.
Google's tax arithmetic on YouTube can be understood as follows-
-If you did not share tax related information: 24% tax on worldwide income for the month
-If you hand over tax-related papers and are eligible for tax treaty benefits: 15% tax every month from income from American visitors
-Tax reported but not eligible for tax treaty benefits: A tax of 30 per cent will have to be paid every month from the total income from American visitors.
Google has started informing the youtubers about these changes through E-mails. Apparently, in America google already collected taxes from the Youtube content creators.
