If you were a YouTuber, your profits will be subject to more deductions soon, as YouTube announced that it will start imposing a tax on the income earned by channel owners outside the United States of America.
The implementation of the new deduction will start in June. The tax rate imposed on content creators outside the United States ranges from 0-30% of the profits earned from viewers in the United States.
The tax rate charged for each channel depends on whether there are agreements and tax exemptions between the channel’s country and the United States.
In the event that Google is not provided with the appropriate tax data before May 31, 2021, it will impose the maximum possible tax depending on the type of AdSense account and the country. The maximum corporate tax is 30% of profits generated from America and 24% of profits generated from the rest of the world.
If your account is an individual, then a 24% tax will be applied on all profits, wherever they come from.
Chapter 3 of the United States Internal Revenue Code requires Google to collect tax information, withhold the tax, and file a report to the IRS, which is concerned with taxation in America, when a content creator participating in the YouTube Partner Program generates revenue from viewers in the United States.
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