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Upcoming tax impact for creators outside of the U.S.
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Hi creators,

Google is required to begin deducting U.S. taxes as early as June 2021 from creators outside of the U.S. which may affect your earnings. We’re asking you to submit relevant tax info in AdSense by May 31, 2021 so Google can determine the correct amount of taxes to deduct, if any apply. If your tax info isn’t provided by May 31, 2021, Google may be required to deduct up to 24% of your total worldwide YouTube earnings. 

We’ve prepared a short video to help walk you through the process. 

What’s happening?
Creators outside of the U.S. may begin to have taxes deducted from their U.S. earnings. These are earnings from viewers in the U.S. through ad views, YouTube Premium, Super Chat, Super Stickers, and Channel Memberships.

Why is this happening?
Google has a responsibility under Chapter 3 of the U.S. Internal Revenue Code to collect tax info from all monetizing creators outside of the U.S. and withhold taxes in certain instances when they earn income from viewers in the U.S.

For creators outside of the U.S., we will soon be updating our Terms of Service where your earnings from YouTube will be considered royalties from a U.S. tax perspective (we’ve already made this change to the Terms of Service for U.S. creators in November). This may impact the way your earnings are taxed, and as required by U.S. law, Google will withhold taxes. 

How do these U.S. taxes potentially impact me? 
All creators have unique tax situations and there are several factors that determine if your revenue will be impacted:
  • Monthly revenue your channel generated from users in the U.S.
    • If you want to see the revenue generated on your channel from U.S. viewers in YouTube Analytics, you can review the Revenue Report and apply a geography filter. 
  • Your tax withholding rate 
    • If you provide tax information, your withholding rate will be between 0% and 30% of monthly U.S. earnings.
      • The withholding rate depends on whether your country has a tax treaty with the United States. In order to claim treaty benefits, you'll have to provide a taxpayer identification number (TIN). Learn more here.
    • If no tax information is provided, your tax rate may default to the higher individual backup withholding rate which is 24% of total earnings worldwide.

A sample calculation to help you understand this concept
Example: A Creator in India earns $1,000 in revenue from YouTube in the last month. Of the $1000 in total revenue, their channel generated $100 from U.S. viewers. 
Here are some possible withholding scenarios: 
  • Creator doesn’t submit tax info: Final deduction is $240 because the withholding tax rate if you don’t submit a form is up to 24% of total earnings. This means that until we have your completed tax info, we’ll need to deduct up to 24% of your total earnings worldwide - not just your U.S. earnings. 
  • Creator submits tax info and claims a treaty benefit: Final tax deduction is $15. This is because India and the U.S. have a tax treaty relationship that reduces the tax rate to 15% of earnings from viewers in the U.S. 
  • Creator submits tax info, but is not eligible for a tax treaty: Final tax deduction is $30. This is because the tax rate without a tax treaty is 30% of earnings from viewers in the U.S. 

What do I need to do to provide accurate tax information?
The tax tool in AdSense will ask you a series of questions that will help guide you in the process. This FAQ article contains information on questions that may come up as you go through the process. 

Once you’re ready, you can submit your info by logging into AdSense to provide the tax form (steps here). There are help markers along the way labeled with “(i)” that will help provide context and explain some of the fields and what they mean so you can fill out these fields accurately. 

Please note that while the questions in the tax form are available in your AdSense supported language, the fields in the tax form only support upper- or lower-case letters (a-z), numbers (0-9), hyphens (-) and ampersands (&). If using an accented character, use the letter equivalent such as n for ñ or a for å. This is due to tax reporting requirements by the Internal Revenue Service (the U.S. tax authority, also known as the IRS). 

When’s the deadline and what happens if I don’t do this in time?
We are asking that all creators in YPP complete this tax information by May 31, 2021. If tax forms aren’t provided, your tax rate will default to 24% of your total earnings for individual account types (this the account type for a majority of creators) even if you only have a small percentage of revenue from U.S. viewers.

What if I’m a U.S. creator?
If you’re a creator in the U.S., we’ve already made this change to the Terms of Service in November. Most of you have already completed U.S. tax info in AdSense and won’t see any new taxes. Although some U.S. creators with incomplete tax info will need to re-submit their form. If you’re a U.S. creator, be sure to check that your info is complete in AdSense by following the steps here

Links & Additional Resources:
While we can’t advise on individual tax situations, some of the following links may be useful. If you need more specific tax advice, we recommend that you reach out to a professional tax advisor. 

You’ll be receiving emails in the following weeks reminding you of this requirement as we get closer to the deadline. Let us know if you have any questions about this process and we’ll try to answer as many as we can below. Please don’t share any personally identifiable information. 

We hope this helps clear up some of the next steps for you. 

Jensen (TeamYouTube)
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How would this affect a monetised YouTube under the age of 18?
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Let me get this straight.

YouTube's parent company has to pay taxes on ads shown on videos to the USA.

We have to pay taxes on ads shown on our videos to our governments.

But now... we also have to pay a new tax to the USA for ads shown to their citizens.

Which means we, I, have to pay tax twice for the same ad? To the USA for viewers from USA who saw ads on my videos and then to our, my own government for ads USA viewers saw on my videos?

I am understanding this correctly?
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Can someone tell me what should I used for "Foreign TIN" if I belong to India? I've got a PAN number and GSTIN also. GSTIN should ideally be used as far as I know but the Google help page says PAN number should be used as "Foreign TIN". Thanks in advance.
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Can you please confirm which of the following checkbox options would apply to a Canadian creator based on the attached image? I believe Canada has a treaty with the US, but I'd like to clarify which options apply to Canadians who simply upload videos now and then.
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KhmerSing You Tube
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