Youtuber angry about new tax liability
No time right now?
A regulation of the US tax code provides that income from YouTube content that is viewed in the USA is also taxed in the USA. This could get expensive.
Google requires all content creators outside the United States of America to deposit their respective national tax identification number in their Adsense account by May 31, 2021. Subsequently, taxes must be paid in the USA.
Contents
Without tax information: 24 percent on everything
This applies to all revenue from YouTube content that is viewed, bought or otherwise monetized by users in the USA. This applies to advertising income from the display of advertisements, paid subscriptions to channels, YouTube Premium or streaming functions such as super chat. Your direct advertising deals with companies are not affected. It’s all about revenue generated through the platform itself.
You can see how much this income is in your Adsense account. Youtube has a video with German subtitles for you that explains exactly how it works.
If you do not provide the requested tax information, Google is obliged to treat you as if you were a US citizen. That would mean that you would have to pay 24 percent tax on all YouTube revenue worldwide, not just on the part that is watched by US citizens.
With tax info: 0-30 percent on US revenues
If the tax information is stored correctly, you can see in your Adsense account the amount of withholding tax that YouTube will withhold from your US income. The service automatically takes existing double taxation agreements into account. This exists between Germany and the USA, for example, and is intended to prevent German citizens from having to pay taxes twice on the same income (and vice versa).
Depending on the country, a tax rate between 0 and 30 percent will be withheld, according to YouTube. Anyone who thinks that they are better off with the 24 percent flat rate should read again carefully. The 24 percent would be due on all income, the maximum 30 percent only on US income.
Youtubers go steeply because of supposed rip-offs
Nevertheless, Youtubers turn around under Google’s explanatory video and complain about the supposed rip-off of the US company. Some announce that they will stop shooting the video. The new regulation would make work uneconomical. Almost 2,400 comments have already been submitted.
The platform operator expressly recommends visiting a trusted tax advisor. He should quickly make it clear that the effects will be kept within bounds. At least if you come from a country that already has a culture of tax-paying. And in of the Liga, Germany is definitely one of the top players …
