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Non-American YouTubers will start paying US Taxes


homomo

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homomo

YouTube has told its content creators and partners that they need to prepare for paying US taxes on their earnings – even if they live and work elsewhere. The already beleaguered video creators are taking it poorly.

The video platform, owned by Google, actually updated its terms of service to tax US creators shortly after the 2020 election, but the change went largely unnoticed in the uproar about censorship. On Tuesday, however, YouTube announced that the taxes will soon be taken out of earnings by creators outside the US.

Taxes will be deducted from earnings derived from US viewers through “ad views, YouTube Premium, Super Chat, Super Stickers, and Channel Memberships,” the platform said.

Google’s support page explains that it will regard the revenue from YouTube Partner Program (YPP) monetization settings as royalties under the US tax code, just as it has been doing to US-based creators since November. Reactions to the announcement have been overwhelmingly negative. 

“Whaaat!? I'm Canadian... Working in Canada.. Already have to pay Canadian taxes on every single dollar I make from YouTube.. Why?” asked Jordan J Sparks, better known as Dance Coach Reacts.

“Imagine making me pay for drone strikes when I'm not even a US citizen,” is how Scottish comedian Mark ‘Count Dankula’ Meechan framed his criticism.

“You take 45% of our earnings already, and you now expect us to pay tax???” tweeted one UK creator, wondering “why on earth should non american creators pay tax to the american government, when you’re already taking a massive chunk of our adsense?”

“Tax it from your own cut” was another popular take, with another creator calling it a “huge middle finger to creators who now have to pay DOUBLE TAX.”

Another major gripe of creators was that their own governments were already taxing their earnings, so YouTube’s announcement amounted to double-dipping.

While some of the commenters on Twitter suggested checking which countries have a tax treaty with the US to prevent dual taxation, there were a few who reasoned that the world needs “a non-american website to do the same thing youtube does.”

Google, YouTube’s parent company, has a long history of structuring its overseas operations to avoid paying taxes – in particular in the EU – itself, and opposing taxes countries such as Russia and India have tried to level on the Silicon Valley giant, the third-biggest tech company in the world.

 

SOURCES: 
‘Huge middle finger’: YouTube tells foreign creators they will soon be charged AMERICAN tax — RT USA News
Important Update: Tax Info Required for ALL Monetizing Creators OUTSIDE of the United States

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homomo

Some countries have tax treaties with the US, which can mitigate the cost of paying taxes anywhere from 20% to 0%. However, many countries don't have a tax treaty with the US, meaning if they have a large sum of viewers from the US that make up most of their income, then 30% of that US income will be taxed. Then of course taxed again in their local country.

In the end, this isn't really YouTube's fault (I mean they are very shady and scummy to their creators, especially the small ones). It's the US government taking money from people not affiliated with them as their citizens and tax residents are the one generating money for the international creator. 

Personally, I feel if I'm going to be taxed by a country I have zero affiliation with, there should be benefits involved. Like that one tweet said, if I'm helping fund missiles to bomb people in other countries, at least treat me as a tax payer and allow me to access certain services then.

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bionic

No taxation without representation :vegas: 

In most countries, your domestic tax due can be reduced if you're taxed abroad. Check the law where you are

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homomo
12 minutes ago, bionic said:

No taxation without representation :vegas: 

In most countries, your domestic tax due can be reduced if you're taxed abroad. Check the law where you are

It depends on the country. But the US tax treaty system is mostly double-taxation. This heavily applies to US citizens who work and live in another country. They have to pay taxes in BOTH the US and the country they are working in. I had an American housemate two years ago who was pissed that she was saving an additional 23% of her income (even after getting taxes automatically taken out from the Irish government) just because she knew she would have to pay that to the US the following year.

Now the US is trying to put this on non-US residents, as they see YouTube creators earning 'royalties' from US viewers via ads, sponsorships, rewards, etc.

For example: India has a tax treaty with the US that makes them only have to pay 10% of that American revenue. Since the US makes up a large group of YouTube viewers, let's assume an Indian person living in India creates YouTube videos with a US audience of 30%

If they make $1000 in one month, $300 of that comes from American viewers. That means the creator in India will have to surrender $30 for US taxes that month, then ALSO have to pay the applicable taxes in India. There is no other treaty that gets that US 10% back to the creator currently.

Let's say a creator from a non-treaty country earns the same with the same US viewership, they will have to pay $90 that month (30%) to the US, while also paying taxes in their own country, as there is no treaty to get that income back in their pockets otherwise.

So you see why this is a problem. If there is no tax treaty or there is one, but it isn't 0%, then it's just free money to the American government.

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And why would I help the economy of a country I don't live in, if it's like that then you must give me a visa and the right to vote 

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Florian

Unpopular opinion but I don't see the issue.

When it's your country asking money back from companies because they're doing tax avoidance everyone is like "yaaaay tax them ! They're making money off our people and don't pay anything"

Well here it's the same, international youtubers make money off the American people without them investing back in the country in any kind of way. See this as customs fees.

Idk maybe I'm wrong :shrug:

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ARTPOP
7 minutes ago, iAstroLeo said:

I got your back YouTubers, I have adblock activated :whitney:

sadie-youre-welcome-gif.gif

What is this avi maam :bear:?

COME ON GAYS!!
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Juanlittlem

Imagine leaving your country to pay less taxes and then youtube does this:lmao:

Spanish youtubers must be fuming :ladyhaha:

Estàvem al cel, ara estem a l'infern
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homomo
27 minutes ago, Florian said:

Unpopular opinion but I don't see the issue.

When it's your country asking money back from companies because they're doing tax avoidance everyone is like "yaaaay tax them ! They're making money off our people and don't pay anything"

Well here it's the same, international youtubers make money off the American people without them investing back in the country in any kind of way. See this as customs fees.

Idk maybe I'm wrong :shrug:

But it’s just self employment. Like, it’s like someone from Indonesia selling T-shirts online, and paying tax in Indonesia. But then the American government is like “Hey, I see 50% of your revenue is from our citizens, so since you are making a lot of money from the people in our country, we have to tax your income too”

YouTube already takes 45% of income from all creators, then those creators pay whatever amount of tax in their own country. And now the US government is like “well Google is American and American people are watching your ads so therefore you should pay tax here.”. Just greedy and corrupt all around

and like this kind of thinking could get other countries involved too. Like imagine every country doing this to YouTubers, or even artists.... Artists would make basically nothing after paying tax in every country where someone watched or supported them.

Idk, like YouTubers in general dont make a lot of money anyway since a large cut is already taken from them. 

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thefamebitch

“No Taxation without representation” :what:Was that not literally the basis for the American Revolution? And... now we’ve become England 2.0 but far worse 

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iAstroLeo
44 minutes ago, Arbmonster said:

What is this avi maam :bear:?

Its how the ass feels after having some mexican food :selena: 

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