Posted on 01-06-2021 by Admin
If you make money by making videos on YouTube, then now you have to pay tax up to 24%. You will have to give your tax information to Google. All YouTubers of the world will have to follow Google s income tax policy. If you are a blogger then you will have to pay tax up to 24%. The reason for that is you are earning money from Google Adsense. This new policy has been applied to content creators outside the US.
How will Google income tax policy apply?
If your YouTube video has a high visiting number of American viewers, then Google can deduct tax up to 24% on that YouTube earnings. If you are a YouTuber of India then 15% tax will be deducted from you.
Experts say that the new rule will not have much impact on India s creators due to the reduced number of American viewers in YouTube videos in India. The reason for that is that the number of viewers of India s YouTube videos is high.
YouTubers from all over the world come under the purview of American tax policy.
Under Chapter Three of the US tax policy law Internal Revenue Code, Google has a responsibility to get tax information from content creators who are earning from US audiences on YouTube. Deduct tax from their earnings and inform the Internal Revenue Service. Therefore, if a creator is from outside the US and he earns from an audience in the US, then from June 1, 2021, tax deduction will start on his earnings.
How can Google cut your money in the form of income tax?
If you provide the correct tax information to Google, then Google will deduct only a part of your total earnings from the American audience as tax. How much will be the tax rate, it depends on what information you give to Google.
How to pay less tax to Google? How can you save tax money from Google
According to the company, if you do not give tax information to Google by 31 May, tax will be deducted up to 24% from the total earnings from all over the world. That is, in this situation, out of 1000 rupees, 240 rupees will be deducted as tax. If you have to give your Pan card and income tax documents to Google, then you can avoid Google s tax.
Due to the Indo-US tax treaty, if only 15 rupees will be deducted from the total earning of 1000 rupees of the YouTuber. According to the company, there is a tax agreement between India and the US. Under this agreement, only 15% will be taxed on the earnings from the audience of America.
YouTuber reported tax, but not eligible for tax treaty
In this situation, 30 rupees will be deducted as tax from youtube s earning of 1000 rupees. That s because without a tax agreement, revenue from viewers in the US would be taxed at the rate of 30%.
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