YouTube to deduct taxes from creators living outside the US, Nigeria included
YouTube has announced that it will start deducting U.S taxes for all creators on its platform, including Nigeria on the earnings they generate from viewers in the US. The company’s new policy will take effect by June 2021.
Speaking on the deduction, YouTube stated: “We’re reaching out because Google will be required to deduct U.S taxes from payments to creators outside of the U.S. later this year (as early as June 2021).
“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 31, 2021, Google may be required to deduct up to 24% of your total earnings worldwide.”
This change applies to all creators outside of the US, including the ones in Nigeria. However, there won’t be any similar tax deduction for creators living in the US.
According to a statement on Google’s support page, Google has a responsibility under Chapter 3 of the U.S. Internal Revenue Code to collect tax info, withhold taxes, and report to the Internal Revenue Service (the U.S. tax authority, also known as the IRS) when a YPP creator on YouTube earns royalty revenue from viewers in the U.S.
That means that only income earned will be affected, but only that earned from viewers within the United States.
YouTube has asked creators to provide their tax information in their AdSense account as early as possible. If a creator isn’t able to provide the information by May 31, the company said that it might need to deduct up to 24 percent of their total earnings worldwide. This could be detrimental to many who rely on the platform to make a living.
RECOMMENDED ARTICLES
Comment
No comments found.