Indian creators needn’t panic about new YouTube tax rules

 Indian creators needn’t panic about new YouTube tax rules

YouTube has announced additional tax requirements for creators outside of the US on their earnings from US viewers. Indian YouTubers need NOT panic. Let’s see what really happened here.

On March 9, the Google-owned video-sharing platform announced that every creator on its YouTube Partner Program (which lets users monetise their videos), regardless of their location in the world, is required to provide their “US tax info” to Google.

“Under US tax law, Google is required to deduct taxes (called withholding) from your YouTube earnings from US viewers, if applicable,” the statement elaborated.

The tax rates will be between 0%-30% on earnings creators generate from viewers in the US and the withholding of these earnings may begin as early as June.

The tax withholding requirements can differ depending on the creator’s country of residence, and on aspects like whether they are eligible to claim tax treaty benefi ..

However, not submitting tax info would lead to a blanket withholding of earnings at the highest tax rate, ranging between 24% to 30%.

So why shouldn't Indian creators worry?

Firstly, the majority of Indian creators have a local audience base. Only about 15% of YouTubers in India—chiefly those who create content in English—have a slight to a significant portion of their viewership in the US.

Indian YouTubers may pay tax on earnings to Google 24% US TAX

YouTube creators have to submit their tax information by March 31, 2021. Google may refund US withholding tax in certain circumstances if updated tax info is provided by December 31, 2021.

Tech giant Google — YouTube’s parent company — has announced that it may deduct up to 24 percent tax on YouTube earnings for creators outside the United States. 

However, this only applies to the earnings they make from viewers in the United States. 

The deductions will start as early as June 2021. The tech giant has also said that this includes earnings from YouTube Premium, ad views, super chat, super stickers, and channel memberships.

 In an official communication, Google said, “All monetising creators on YouTube — regardless of their location in the world — are required to provide tax info. 

Please submit your tax info as soon as possible. If your tax info isn’t provided by May 31, 2021, Google may be required to deduct up to 24 percent of your total earnings worldwide.”

 Explaining this decision, YouTube said that Google is obliged under Chapter 3 of the US Internal Revenue Code to collect tax info and withhold taxes. In fact, it must report to the Internal Revenue Service — the American agency responsible for the collection of taxes and enforcement of tax laws — when a YouTube creator earns royalty revenue from viewers in the country.

How to update your US tax information YouTube creators need to submit their US tax information on the Google AdSense page. Here’s a step-by-step method that creators need to

 follow: Sign in to the Google AdSense account. 

Click on payments. 

Click on manage settings.

 Scroll to payments profile, and click edit next to United States tax info.

 Click manage tax information.

 Fill in the required details. 

Creators may need to re-submit taxation information every three years.

 Moreover, only Latin characters can be used when submitting tax forms.

 Creators can see the finalised amount withheld in their regular AdSense payments transactions report.

How does this impact Indian YouTubers? Every YouTube creator — regardless of their location — is required to provide US tax information to Google. 

The tax withholding requirements can differ depending on the country of residence and whether the creators are eligible to claim tax treaty benefits. 

India and the US have a tax treaty relationship, which pegs deductions at 15 percent of the earnings. 

Say, if a creator has a monthly income of $1000 from a YouTube channel, of which $100 comes from the US, and if they have submitted the tax information, the deduction will stand at $15 (15 percent of $100). 

However, if Indian YouTubers have not submitted the details, the deduction will stand at $240, that is, 24 percent of the total earnings, and not just the US earnings.

How to Offline a video in Youtube.

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Q) What is the Offline feature?

The Offline feature allows you to watch videos over and over again, without buffering or internet connection. You can add videos to your device, and see them inside the Offline section of your YouTube app.

Q) How do I Offline a video?

Touch the Add to Offline    icon below the video, or select Add to Offline from a video's context menu    to get started. Remember, you need to be signed-in to be able to Offline videos.

Q) On what versions of the YouTube app can I use the Offline feature?

You can use the Offline feature in all the latest versions of the YouTube app (10.0+ on Android, 2.16+ on iOS). Upgrade your app now to start Offlining videos.

Q) Where can I find all the videos that I have Offlined?

An available offline  icon will appear below the video once it has been added to offline. To access videos or playlists that have been added to Offline, touch Offline in the Guide menu.

Q) Will my mobile data be used for Offlining videos?

By default, videos are only added to Offline over Wi-Fi. To allow videos or playlists to be added to offline over mobile networks, go to Settings > Background & Offline and un-check the box next to Add over Wi-Fi only (mobile data charges could apply in this case).

Q) Can all videos in the YouTube app be Offlined?

While a majority of videos in the YouTube app are available for Offlining, you may find that some videos are not, and are marked with the  icon. We continue to work hard towards making more and more videos available for Offlining every day.