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Thursday, February 29, 2024

YouTubers have to pay tax on part of their earnings in the USA

Anyone who creates YouTube videos that are watched and monetized in the USA will also have to pay taxes there in future. Up to 30 percent can be incurred.

By May 31st, YouTubers who make money from their videos in the US are required to register tax information in their accounts and pay taxes in the US. If no information is given, up to 24 percent of all income can be withheld. Otherwise, what counts as income is what was earned in the USA. Up to 30 percent of this can be due. The background is a tax code. Some YouTubers get upset that they should pay taxes.

This does not affect advertising deals between creators and companies, but rather revenues generated by US viewers themselves via YouTube. This can be through ad views, channel subscriptions, YouTube Premium or streaming functions such as Superchat. In a video, YouTube explains how you can see the amount of revenue in the US – and thus also estimate how high the taxes will be. The monthly income can be filtered by country via YouTube Analytics. The decisive question then is whether a tax agreement exists between the USA and the country of origin of the video creator. There is a so-called double taxation agreement with Germany .

Every YouTuber needs a tax ID

YouTube Ads can determine the amount of the tax after receiving the tax identification number, so it knows how high the rate may be. The advertising service will ask users to enter the ID in the coming weeks. It must be entered in the settings under payment and then under US tax information. According to YouTube, here are a few questions to help determine which tax form to submit – for “individuals” or companies. In the video, however, the creators are immediately advised to consult a tax advisor if they are not sure. YouTubers who are paid via a network or an agency are also obliged to provide their tax information.

Under the video with the announcement, users complain that such a levy would make their work uneconomical. Many write that having to pay taxes twice, in the country of origin and in the USA, is not fair. There are options here to make deductions from other countries valid here in your tax return – not necessarily in full. The fact that they have to pay taxes at all seems to strike some commentators too. One “girly” wrote that she was confused, she only had a tax number from the Philippines, where she comes from and pays 15 percent tax, her company is based in the UK, where she apparently does not cede taxes, and she currently lives in Dubai.

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