YouTubers In India To Be Taxed 24% By Google: Know Why

Google might have some bad news for the YouTube content creators in India and other countries. The search giant has announced via an email to all YouTubers that it might collect up to 24 percent tax on their YouTube earnings. However, the tax will only be applicable for earnings from viewership from the US.

This also means that American YouTubers won't have the burden of an extra tax, as this is only applicable for creators outside the US. The process is said to start in June this year. Google also stated that this includes earnings from ad views, channel membership, YouTube Premium, super chat, and super stickers.

Google's official mail reads: "Over the next few weeks, we'll be asking you to submit your tax info in AdSense to determine the correct amount of taxes to deduct, if any apply. If your tax info isn't provided by May 31st, 2021, Google may be required to deduct up to 24% of your total earnings worldwide."

The amount of tax deducted from the earnings will depend on a few factors. If a YouTuber submits their tax info they can get a withholding rate of 0-30% on earnings made from US viewers.

The support page says, "If you submit US tax info, withholding rates are between 0 percent and 30 percent on earnings that you generate from viewers in the US and depend on whether your country has a tax treaty relationship with the United States."

To update the US tax information, YouTubers need to submit their US tax info on the Google AdSense page. To do that, they need to first sign in to their account and then click on payments. Further tap on manage settings, look for payment profile, and hit the edit button next to US tax info. Then they will be required to fill in the asked details.

YouTubers will be required to repeat the process every three years. The platform will also provide information about the amount withheld in their regular AdSense payments report.

Indian creators can take advantage of the India-US tax treaty, which will bring the deductions to 15 percent of the earnings. So if an Indian YouTuber submits the required tax information, Google will deduct $15 for every $100 of earnings coming from the US viewers.