Hello AdSense publishers,
You may recently have noticed changes coming to how we handle taxes in AdSense. These changes will mostly affect US based publishers and publishers with YouTube earnings, however all AdSense accounts may receive notifications that they must complete, update, or revise their tax information/ tax form in order to have taxes withheld properly. We highly encourage you to spend some time reviewing your tax documents to ensure that all the proper information is provided. Check out this Help Center article
for more information.
For publishers based outside of the United States, it is also important for you to make sure your tax information is valid so that you are not subject to any undue withholding. For reference, only US sourced service income is subject to US withholding.
Some quick answers to questions we have received can be found below:
Q: For non-US publishers with both AdSense YouTube earnings, if they submit their tax forms, will AdSense earnings be tax withheld similar to YT?
A: At the moment, if a valid tax form is provided, only YouTube royalty earnings will be subject to withholding. Adsense services earnings would only be subject to withholding tax if you are performing services in the United States.
Q: Which tax form should I submit?
A: The appropriate tax form is generated based on how you answer the preliminary question and the form you select. If you have any doubts, please consult your tax advisor.
A Form W-9 will be required from US persons (US individuals and entities).
Generally speaking, a Form W-8BEN or Form W-8BEN-E: is required from non-US individuals and entities (respectively), who are the beneficial owner of the income received, and may be used to claim a reduced rate of withholding via treaty benefits. Please note: Individuals generally may not use a Form W-8BEN to claim treaty benefits under an independent personal services treaty article.
A Form W-8ECI: is used by persons claiming income received is effectively connected with a US trade or business, has a US tax ID and files a US tax return (e.g., Form 1040).
A Form W-8EXP: is used by entities to establish non-U.S. beneficial owner status and eligibility for a reduced rate of tax withholding as a non-U.S. government, central bank, international organization, non-U.S. tax exempt organization, non-U.S. foreign private foundation or government of a U.S. possession.
A Form W-8IMY: is required to be submitted for certain non-US intermediaries, partnerships and flow-through entities. Google may ask for additional documentation (e.g. allocation/withholding statement) if this form is provided.
Unfortunately Google is unable to provide specific tax advice for our publishers, but be on the lookout for more information regarding the Tax Center Update in the future.
All the best,
AdSense Pro Mateo