Today in this article we will tell you about the additional tax info requested by Google Adsense from its publishers. We will explain the reason and applicable taxes with examples.
we will tell you about the additional tax rules implemented by USA for Google Adsense publishers. This rule will apply to non US YouTube creators. Under this rule, you must pay tax on your earnings made due to US viewers.
You might see this warning message in your Adsense dashboard.
Important: Check if additional tax information is required from you. All YouTube creators and partners are required to submit tax information to ensure any applicable taxes on your payments are accurate.
What is Adsense additional tax information for Non USA YouTube creators?
This rule came into force on 9 March 2021. Google had to bring this rule under US tax rules. Under this rule, any YouTube channel that earns through US viewers need to pay tax.
Under this rule, you have to tell your tax related information to Google Adsense. In fact, This information will help Adsense to debit your tax.
Under this rule, you will have to pay some percentage of your earnings to the US government as tax. However, For this you do not have to go to the US and pay tax. In fact, Adsense will pay for you by debiting from your AdSense earnings. The debited amount Google Adsense will pay the US Govt.
How Adsense will debit additional tax on revenue generated due to USA viewers ?
If you are a new AdSense user, then fill the additional tax information as soon as possible. If you do not do this, then 24% of your entire Adsense earnings will be deducted as tax. And if you fill in the tax information, in this stage Google Adsense will only debit the applicable tax on your US earnings.
Next let us know how much a non US Adsense partner has to pay. So, this will depend on the tax treaty relationship between your country and the US. A tax treaty is an agreement between two countries for mutual taxation.
Under this, one country pays some percentage of tax to another country for various services. If your country does not have a tax treaty with the US, you may have to pay some tax upto 30%.
How can get information whether my country has tax treaty relationship with USA or not ?
You can visit IRS link to know which countries the US has tax treaties with.
Let’s Understand the additional applicable tax with examples :
For example, suppose you are an Indian YouTube creator. In this case, you will have to pay a tax of 15% from your US earnings. You will get it because you are getting the tax treaty benefit of India and US.
Let’s say your YouTube channel has earned $2000 through US viewers. If you are a citizen of India then you have to pay tax of $300. That is, 15%. Because of India and US tax treaty relationship.
Similarly, if you are from Canada or the United Kingdom, you will have to pay 0% tax. That means, You no need to pay any tax on your income generated by US YouTube viewers.
Similarly, if you belong to Mexico or Korea, then your tax rate is 10%. This is because of tax treaty benefits.
Apart from this, if you have filled the tax form, then the details of applicable tax will be shown in your Adsense account. This tax rate will depend on your country and the US tax treaty.
Google Adsense will automatically calculate this tax. But for this you have to submit your additional tax information to Adsense. By doing this, you are eligible to avail US India tax treaty benefits.
Learn more about Addtional Tax information on YouTube creators channel
Please watch this video from YouTube creators channel to know more. In fact, You will get all the details about this new rule.
Please fill your additional tax information asked by Google Adsense immediately. Failing to do so may impact your tax calcualtion. You will charge flat 24% on all your earnings. Last date for old Adsense publishers was 31 May 2021.
Thanks for reading this article. Please provide your valuable comments if you need any additional information about this new tax system.