New Delhi: Tech giant Google is set to deduct tax from content creators on YouTube.
As the new policy comes into effect, the YouTube content creators from India would have to pay a tax of up to 15 per cent. This move would be a big setback for content creators, including those from Kerala. YouTube saw a surge in the number of content creators during the COVID-19 lockdown.
The company has decided to deduct tax from YouTube content creators outside the US, as per the US norms. Ahead of this, Google has sent an email to content creators, asking them to submit the tax information on AdSense.
If valid tax information is submitted on AdSense, the payments section would give you the details as to what percentage of the earnings from your channel would be deducted.
“If any tax deductions apply, Google will withhold taxes on YouTube earnings from viewers in the US from ad views, YouTube Premium, Super Chat, Super Stickers, and Channel Memberships,” Google said in its support page.
This new policy is applicable to all content creators outside the US. The tax for content creators in India has been fixed at up to 15 per cent.
“If your tax info isn’t provided by May 31, 2021, Google may be required to deduct up to 24 per cent of your total earnings worldwide, not just US earnings,” the company added.