Google has just made an announcement in Gmail regarding the new tax system. These new changes in Youtube can make Youtubers a bit poorer. The giant search engine said in an email that it will be “required to deduct U.S taxes from payment creators outside of America” It is mentioned that Americans doest need to take additional tax burden. This new tax for YouTubers will start as soon as possible from early as June 2021. In a mail, it is also mentioned that over the next week, they will be asking you to submit the tax info in AdSense to determine the correct amount of taxes to deduct, if any apply.
Google will deduct up to 24% of your total earnings if your tax info is not provided by May 31st, 2021 said Google in official communication.
It is important to understand is that tax will be deducted from the earnings from the viewers in the US through ad view, Youtube premiums, Super Chat, Membership. You don’t have to pay tax for the money you make outside the US if you provide relevant tax documents. But if you ignore to submit you may have to pay a massive 24% tax on your entire monthly earnings from Youtube.