Google Says It's Time To Learn Your Tax Laws, YouTube Creators - Android

YouTube creators outside of the US will need to brush up on their taxes and submit the info by May 31 if they hope to avoid a 24-percent cut to their earnings. That's based on a recent report from 9to5Google, detailing new rules going into place. Those rules, put simply, require the Google-associated company to [...]

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The post Google Says It's Time To Learn Your Tax Laws, YouTube Creators appeared first on Android Headlines.

YouTube creators outside of the US will need to brush up on their taxes and submit the info by May 31 if they hope to avoid a 24-percent cut to their earnings. That's based on a recent report from 9to5Google, detailing new rules going into place. Those rules, put simply, require the Google-associated company to charge a tax on money earned on the platform. Specifically, that's generated by content creators on the top-tier streaming platform outside of the US.

How exactly does a tax work on YouTube creators outside of the US?

Google is reportedly reaching out to those YouTube creators about the tax change via email. The company says that tax info will need to be submitted in AdSense in order to determine the appropriate deductions. That's if any apply. If not, Google will effectively be forced to take 24-percent of a YouTuber's full earnings globally.

The responsibility for Google to tax creators on YouTube stems from Chapter 3 of the US Internal Revenue Code. But that doesn't mean all taxes have to be taken at such a high rate. Those who submit their tax info could see significantly smaller cuts to their pay.

Your regional laws will make a difference

In Google's example, on the relevant support page, the company utilizes a hypothetical YouTube creator from India. If a creator in the region earns $1,000 in a month it says, and only $100 was from US viewers, taxes could be applied differently. The final deduction for a YouTuber who doesn't submit tax info would be $240 because of the 24-percent rate. For one who does, only the US earnings would be calculated. In this case, the creator would only pay $15.

The $15 sum in the search giant's example is totaled due to a tax treaty between India and the US, though. That means that taxes will impact creators differently depending on their region. In the India example, the treaty results in a tax rate of just 15-percent of earnings from US-based viewers.

Without the tax treaty, for example, Google says that the deduction would be $30 for that month's income generated from the popular app.  That's as opposed to the rate without tax info being submitted.

The post Google Says It's Time To Learn Your Tax Laws, YouTube Creators appeared first on Android Headlines.