Announcement! Now YouTubers From All Over The World Are Paying Taxes To The United States

YouTubers worldwide will be taxed by the US (The Verge)

JAKARTA - Youtuber will be taxed by the United States government. This policy applies to all YouTubers in various parts of the world, including YouTubers from the Republic of Indonesia. Especially for YouTubers who have an audience base in the US.

YouTube will cut revenue from advertising as a form of cutting Youtuber's income for taxes. This announcement has been distributed to all YouTubers via e-mail, Wednesday, March 10.

"We contacted because Google will require a withholding tax from payments of creators outside the US this year (as early as June 2021)", said the YouTube party in an e-mail that has been circulated.

"In the next few months, we will ask you to submit tax information in AdSense to determine the correct amount of withholding tax, if any", added YouTube via e-mail.

Youtuber must send this information by the end of May 31. If Youtuber doesn't send the requested information, Youtuber's income will be cut by 24 percent.

The tax enactment follows the US Internal Revenue Code Chapter 3 policy regarding domestic taxes from the federal tax law that has been enacted by the United States government.

Google, as the parent company of YouTube, has an obligation to collect tax information from video content creators who have earned income outside the United States. YouTubers will be taxed if the viewers are from US residents.

This means that this tax collection only applies to YouTubers who have audiences from Uncle Sam's country. Google provides examples of tax regulation scenarios for YouTubers.

For example, a Youtuber from India got USD 1,000 (equivalent to IDR 14 million) from YouTube the previous month USD 100 (around IDR 4 million) obtained from viewers from the US. So, the rule that will be enforced if Youtuber does not send tax information is that the creator's income will be cut by USD 240 (around IDR 3.4 million) or 24 percent of the total income of USD 1,000.

This tax cut will be applied to YouTubers in various parts of the world until the information is sent to Google. So, it's not just for YouTubers from the US.

In the second scenario, if Youtuber sends his tax information and claims the benefits of the agreement, the creator will be taxed at 15 percent. In the third scenario, if a YouTuber sends tax information but doesn't claim treaty benefits, the creator will be taxed as much as 30 percent of US viewers.