Mr Macaroni, Taaoma, other YouTube content creators will now pay tax to US government
- Nigerian-based YouTube content creators have been asked to begin paying taxes to the US government from June 2021
- YouTube stated content creators that fail to provide tax information before May 31, 2020, will be sanctioned with a higher tax rate
- The video-streaming company revealed steps for content creators to provide their tax information before the deadline
Mr. Macaroni, Taaoma, and other Nigerian-based content creators on YouTube will start paying tax to the United States, according to a statement from the online video-sharing platform. YouTube said only content creators earning revenue from United States residents will be affected.
The new tax policy will also affect other content creators across the world. The tax will be deducted from the earnings they each receive from the Google-owned company starting as early as June 2021.
Their earnings from the video-streaming platform will now be taxed due to a tax policy from the United States government. When a YouTube partner program creator earns royalty revenue from US viewers, the video-streaming platform is meant to report to the US Internal Revenue Service.
Also, in line with Chapter 3 of the US Internal Revenue Code, Google is required by law to collect tax and withhold tax. This means revenue earned from viewers in other countries will not be taxed.
In a statement sent to content creators, the internet-based video-on-demand firm said the creatives have until May 31, 2021, to provide their tax information in AdSense, to enable the entertainment company to determine the appropriate tax rate.
Source: UGC
Any YouTuber that fails to provide their tax information before the deadline will have a 24% tax deduction from their earnings globally, the statement warned.
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In the statement, the video-search engine stated:
“We’re reaching out because Google will be required to deduct U.S taxes from payments to creators outside of the U.S. later this year (as early as June 2021).
“Over the next few weeks, we’ll be asking you to submit your tax info in AdSense to determine the correct amount of taxes to deduct, if any apply. If your tax info isn’t provided by May 31, 2021, Google may be required to deduct up to 24% of your total earnings worldwide.”
Guide on submitting tax information
According to Google, the following highlights how Nigerian YouTubers and other content producers across the world can submit their tax information.
- Sign in to your AdSense account
- Click Payments
- Click Manage settings
- Scroll to "Payments profile" and click edit
- Edit next to "United States tax info".
- Click Manage tax information.
On this page, you'll find a guide that will help you to select the appropriate form for your tax situation.
Google further stated:
"After you submit your tax information, follow the instructions above to check the “United States tax info” section of your Payments profile to find the tax withholding rates that may apply to your payments."
Meanwhile, Legit.ng had previously reported that Google has ended its paid ad for hotel, e-commerce, and flight booking companies interested in listing their services on Google.com/travel.
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The companies previously pay for the listing, but it's now free, as Google intends to compete with Amazon, which has been depleting the search engine's traffic.
Fakoyejo Olalekan is a Business and Financial Journalist with over three years of experience in covering finance and business activities within Nigeria and offshore. Prior to joining Legit.ng, he worked at Nairametrics where he wrote financial and investment analysis articles. Olalekan is a resourceful and result-driven journalist with a track record for conducting extensive research and interviews to produce articles that provide different perspectives to market activities.
Source: Legit.ng
