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All YouTube Partners Must Submit U.S. Tax Information


All YouTube Partners must now submit U.S. tax information in AdSense by May 31st, no matter what country they are in. If no tax information is submitted, a higher percentage of earnings from YouTube may be withheld.

Last November, YouTube announced that there would be an update to the Terms of Service, Among the changes, all payments from YouTube are considered “royalties”. And that means that creators outside the U.S. “may be required to submit tax information in AdSense” and “may be subject to U.S. withholding taxes.” More information was promised.

Now there are more details, and a deadline.

Announcement: Upcoming tax impact for YouTube creators outside the U.S.

Note that U.S. YouTube Partners and AdSense Publishers have always needed to submit tax information to get paid. What is new is now all participants in the YouTube Partner Program are also required to submit that information.

If you only use AdSense for Content on your own website or blog, this should not apply to you. This change is for YouTube creators. 

Here are the important details:
  • The deadline to submit tax information is May 31, 2021. If no tax information is submitted, up to 24% of your total worldwide YouTube earnings will be withheld.
  • If tax information is submitted, taxes may be withheld from earnings from viewers in the U.S. So that may be only a fraction of your total YouTube earnings.
  • It includes all types of earnings, including ad revenue, Memberships, and Super Chats. But, again, only when earned from viewers in the U.S.
  • The percentage withheld depends on whether the country you are in has a tax treaty with the United States. That can range from 0% to 30%. You will need to submit a Taxpayer Identification Number (TIN) to claim tax treaty benefits.
YouTube has a helpful overview on how to update your account:  



    What does that mean in practical terms?

    Let’s say you have $1000 in total earnings from YouTube, and $100 of those earnings are from viewers in the U.S.
    • If you do not submit tax information: 24% of your total earnings is withheld. $240 is withheld.
    • If you submit tax information and claim a tax treaty benefit: Let's say you are in a country with a tax treaty benefit that reduces your tax rate to 15%. $15 is withheld. For some countries (like Canada and the UK) the tax treaty benefit reduces the rate to zero.
    • If you submit tax information and do not claim a tax treaty benefit: 30% of earnings from U.S. viewers is withheld. $30 is withheld.
    Even if you only have $1 in U.S. earnings per month, it is worth submitting the tax forms to reduce your overall tax withholding rate.

    How to Submit Tax Information in your AdSense Account

    AdSense has updated their tax information submission tool to make it easier to submit tax info.

    Note: As you fill out your tax forms, you will see the 🛈 icon. Click for information about the fields you need to fill out so you can fill them out accurately.
    1. Sign in to AdSense (www.google.com/adsense)
    2. On the left menu, click Payments
    3. Click Manage Settings
    4. Under your Payments Profile find United States Tax Info and click the pencil icon to edit.
    5. Click Manage Tax Info
    6. Answer the questions to be directed to the correct form, and fill out the information.
    There are three payment types you can choose from, choose all that apply to you
    • Other Copyright Royalties (such as Play and YouTube Partner Program)
    • Motion Picture & TV Royalties (such as certain YouTube Movies and Shows and Play partners)
    • Services (such as AdSense)
    The form does not support characters with accents. It only supports upper or lower-case letters (a-z), numbers, hyphens, and &s.  If your name has an accent, enter the non-accented version.

    Help! This is confusing!

    Yes, it’s confusing. And YouTube cannot simplify the language or advise you how to fill out the tax forms. If you have questions, you may need to consult a tax professional.

    YouTube has provided instructions and a FAQ: Submitting your U.S. tax information to Google

    A few helpful points.

    Which tax form is being filled out?

    If you are a US person, Form W-9 is required.

    If you are a non-US individual or entity, you generally need to fill out a Form W-8BEN (for individuals) or W-8BEN-E (for businesses). This may be used to claim a tax treaty benefit.

    US Internal Revenue Service (IRS) instructions for form W-8BEN (pdf) and form W-8BEN-E (pdf) with more detailed information.

    If you have questions, consult a tax advisor.

    What is a TIN?

    Information from YouTube: 
    A taxpayer identification number (TIN) is a tax processing number required by the IRS (the U.S. tax authority) for all U.S. tax forms. Non-U.S. citizens may need an individual TIN (ITIN). If you are claiming a tax treaty benefit, you are required to provide either a Foreign TIN or a U.S. TIN.
    The IRS has information about Taxpayer Identification Numbers. You may need to consult your local tax authority to get a TIN in your own country.

    Google has provided the following information about TINs in different countries.
    • India: Permanent Account Number (PAN).
    • Indonesia: Nomor Pokok Wajib Pajak (NPWP).
    • Japan: Individual Number (nicknamed "My Number").
    • Korea: Business Registration Number must be used in order to claim a U.S. treaty benefit. Due to local regulation, Google cannot accept any other foreign personal identification (such as Korean resident registration number).
    • Russia: Taxpayer Personal Identification Number known as INN.
    • United Kingdom: Unique Taxpayer Reference (UTR), National Insurance Number (NINO).
    How can I you find out if you are in a country that has a tax treaty with the United States?

    If you are an a country that has a tax treaty with the U.S., you should see that suggested during the tax information submission process.

    The IRS has all tax treaties: United States Tax Treaties A to Z

    Learn More

    Submitting Tax Information
    YouTube Terms of Service

    Comments

    1. It sounds like the US government taxes non-US citizens but I don't understand the tax code.

      ReplyDelete
      Replies
      1. I think the US government wants a cut of any revenue generated in the US.
        So I think what's changed is how the revenue generated by YouTube partner is defined as US activity.
        But it's complicated and confusing.

        Delete
    2. You have a real ability to write a content that is helpful for us. Thank you for your efforts in sharing such blogs to us. Top tax planning services for restaurants

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