{"id":2021,"date":"2021-04-26T15:50:50","date_gmt":"2021-04-26T10:20:50","guid":{"rendered":"https:\/\/www.flintzy.com\/blog\/?p=2021"},"modified":"2021-10-22T18:43:12","modified_gmt":"2021-10-22T13:13:12","slug":"how-youtubes-new-tax-update-affects-creators","status":"publish","type":"post","link":"https:\/\/www.flintzy.com\/blog\/how-youtubes-new-tax-update-affects-creators\/","title":{"rendered":"How YouTube\u2019s New Tax Update Affects Creators"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Google has recently announced that it may deduct up to 30% tax on YouTube earnings for revenue earned from viewers in the United States. With YouTube&#8217;s new tax update, creators in non-US countries can see a drop in revenue. However, there are other ways you can continue to earn a fantastic income through a YouTube career. Here\u2019s what you need to know about this new update.<\/span><\/p>\n<p><b>What\u2019s Happening?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Google is asking monetized creators on the YouTube Partner Program to update their tax info on AdSense. Based on this info, Google is entitled to deduct up to 30% tax on your total earnings, based on the tax treaty between the US and the creator\u2019s home country. Here are the various possible scenarios:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Creator does not submit tax info: If the creator account is classified as a business account, the deduction will be 30%, while for individual accounts, it will be 24%.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Creator submits tax info (without tax treaty): If the creator\u2019s home country has no tax treaty with the US, 30% of earnings will be deducted.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Creator submits tax info (with tax treaty): Based on the tax treaty between the two countries, this can go up to 15%.<\/span><\/li>\n<\/ol>\n<p><iframe loading=\"lazy\" title=\"Important Update: Tax Info Required for ALL Monetizing Creators OUTSIDE of the United States\" width=\"900\" height=\"506\" src=\"https:\/\/www.youtube.com\/embed\/SeKEtf8A3FU?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><b>Why Is This Introduced?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">As per Google\u2019s terms of service, revenue earned from viewers in the form of ad views, YouTube Premium subscriptions, channel memberships, super chats, etc. is considered royalty from a tax perspective. Under Chapter 3 of the US Internal Revenue Code, Google, the parent company that owns YouTube, has to report to the US Internal Revenue Service about royalty revenue contributed by viewers from the US.<\/span><\/p>\n<p><a href=\"https:\/\/unsplash.com\/photos\/SiOW0btU0zk\"><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-2023 size-full\" src=\"https:\/\/cdn.flintzy.com\/blog\/wp-content\/uploads\/2021\/04\/26154617\/photo-1554224154-22dec7ec8818.jpg\" alt=\"\" width=\"334\" height=\"501\" srcset=\"https:\/\/cdn.flintzy.com\/blog\/wp-content\/uploads\/2021\/04\/26154617\/photo-1554224154-22dec7ec8818.jpg 334w, https:\/\/cdn.flintzy.com\/blog\/wp-content\/uploads\/2021\/04\/26154617\/photo-1554224154-22dec7ec8818-200x300.jpg 200w\" sizes=\"(max-width: 334px) 100vw, 334px\" \/><\/span><\/a><\/p>\n<p><b>Can This Affect You?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">If you are a YouTube content creator with a monetised channel, this does affect you. While US-based YouTubers already pay taxes to the US IRS, creators from the rest of the year will be affected when the new update is enforced.<\/span><\/p>\n<p><b>Should Creators From Non-US Countries Be Worried?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Depends. If your channel caters to a mostly local audience, then most of your earnings are from local viewers. This does not categorise as \u201croyalty\u201d from US viewership and thus won&#8217;t be considered for deductions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For channels that do cater to a more global audience, their revenue could take a massive hit, especially if most of their foreign audience is from the US. While CPM is higher in these cases, the overall revenue too is higher, resulting in more deductions. As India has a tax treaty with the US, the tax rate would be around 15% of the revenue from US viewership.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-2024\" src=\"https:\/\/cdn.flintzy.com\/blog\/wp-content\/uploads\/2021\/04\/26154805\/photo-1554224155-6726b3ff858f.jpg\" alt=\"\" width=\"1172\" height=\"672\" srcset=\"https:\/\/cdn.flintzy.com\/blog\/wp-content\/uploads\/2021\/04\/26154805\/photo-1554224155-6726b3ff858f.jpg 1172w, https:\/\/cdn.flintzy.com\/blog\/wp-content\/uploads\/2021\/04\/26154805\/photo-1554224155-6726b3ff858f-300x172.jpg 300w, https:\/\/cdn.flintzy.com\/blog\/wp-content\/uploads\/2021\/04\/26154805\/photo-1554224155-6726b3ff858f-768x440.jpg 768w, https:\/\/cdn.flintzy.com\/blog\/wp-content\/uploads\/2021\/04\/26154805\/photo-1554224155-6726b3ff858f-1024x587.jpg 1024w\" sizes=\"(max-width: 1172px) 100vw, 1172px\" \/><b style=\"text-indent: 0em;\"><\/b><\/p>\n<p><b style=\"text-indent: 0em;\">When Does This Come Into Effect?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The new tax update will take effect as early as June 2021. Monetized creators in non-US countries will have to update their tax info in Adsense by 31st May 2021, failing which they might have to pay up to 24% of their earnings.<\/span><\/p>\n<p><iframe loading=\"lazy\" title=\"The 24% TAX on YouTube Creators is Here... TAKE ACTION NOW!\" width=\"900\" height=\"506\" src=\"https:\/\/www.youtube.com\/embed\/pggL-eBdtII?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p><span style=\"font-weight: 400;\">The new YouTube tax update might not affect you drastically. Nevertheless, you still need to update your tax info in Adsense and adhere to these guidelines. If your earnings are taking a hit, look into other sources of revenue such as brand partnerships, endorsements and affiliate programs so that you don\u2019t have to rely on a single source of income.<\/span><\/p>\n<p><b><i>Interested in getting your YouTube channel seen by a huge audience? Get started here: <\/i><\/b><a href=\"https:\/\/www.flintzy.com\/\"><b><i>www.flintzy.com<\/i><\/b><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Google has recently announced that it may deduct up to 30% tax on YouTube earnings for revenue earned from viewers in the United States. With&hellip;<\/p>\n","protected":false},"author":1,"featured_media":2025,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[248],"tags":[129,884,885],"class_list":["post-2021","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-strategy","tag-youtube","tag-youtube-2021-updates","tag-youtube-tax-update"],"modified_by":null,"_links":{"self":[{"href":"https:\/\/www.flintzy.com\/blog\/wp-json\/wp\/v2\/posts\/2021"}],"collection":[{"href":"https:\/\/www.flintzy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.flintzy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.flintzy.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.flintzy.com\/blog\/wp-json\/wp\/v2\/comments?post=2021"}],"version-history":[{"count":1,"href":"https:\/\/www.flintzy.com\/blog\/wp-json\/wp\/v2\/posts\/2021\/revisions"}],"predecessor-version":[{"id":2027,"href":"https:\/\/www.flintzy.com\/blog\/wp-json\/wp\/v2\/posts\/2021\/revisions\/2027"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.flintzy.com\/blog\/wp-json\/wp\/v2\/media\/2025"}],"wp:attachment":[{"href":"https:\/\/www.flintzy.com\/blog\/wp-json\/wp\/v2\/media?parent=2021"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.flintzy.com\/blog\/wp-json\/wp\/v2\/categories?post=2021"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.flintzy.com\/blog\/wp-json\/wp\/v2\/tags?post=2021"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}