YouTube creators in India have to pay withholding tax on US earnings
The quantum of tax will be determined based on the submission of valid tax forms, how much a channel earns from US viewers, and if a valid claim under the tax treaty India has with the US
Google said it 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 US. These US earnings can come from ad views, YouTube Premium, Super Chat, Super Stickers, and Channel Memberships.
Indian content creators will be asked to submit tax information in AdSense. The quantum of tax will be determined based on the submission of valid tax forms, how much a channel earns from US viewers, and if a valid claim under the tax treaty India has with the US. Google clarified that this does not affect creators in the US as they should have already submitted their U.S. tax information in AdSense when they first joined the YouTube Partner Program.
The tax withholding rate on royalties is 15% if the correct claim is made under the Indo-US tax treaty. If tax forms are not submitted on time, Google will presume that an individual creator is a US citizen and will withhold 24% of total earnings worldwide until it gets the tax details. To claim tax treaty benefit creators will need to provide an India tax identification number or in some cases a US Tax identification number.
"If you’re a monetizing creator outside of the U.S., like India, important tax changes are coming later this year that may affect your YPP earnings. You may begin to have taxes deducted from your U.S. earnings later this year. These are earnings from viewers in the U.S. through ad views, YouTube Premium, Super Chat, Super Stickers, and Channel Memberships," YT Creators India said in a series of tweets.
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