YouTube is going to start charging US tax on videos made by non-USians

[sub68]

hold up.

Since google is California base is this going to CA or to youtube

[Kisai]

21 minutes ago, sub68 said:

hold up.

Since google is California base is this going to CA or to youtube

It's going to the IRS.

[sub68]

Just now, Kisai said:

It's going to the IRS.

this makes more sense

[IkeaGnome]

19 hours ago, huilun02 said:

Google/Youtube is NOT a tax authority

If they made this call, it means said tax is going to Youtube and not the state

 

13 hours ago, CarlBar said:

 

I think your not understanding this right. That or my usual communication issues are rearung their head.

 

The point isn't about where somone pays taxes. Rather lets say you Bombastinator watch a youtube video of mine, (i don;t have a youtube channel but lets say i did for the example). Whenever you watch an ad on my video i get US taxes deducted from the ad revenue of your view before it's [paid to em here in the UK. At that point i have to declare that money I've been paid to the UK tax office and they will tax me Uk income tax on the money i received after US tax deductions.

 

I actually have to wonder how legal this is in some countries. I imagine most don;t have any laws about ti because it's such an unusual situation. But national laws tend to produce at least one worldwide exception damm near all the time.

 

 

 

12 hours ago, CarlBar said:

 

The issue here is that it seems YouTube will be taking the tax money off before they pay you, so you don;t get the opportunity to make a deceleration like that.

Didn't mean to quote you twice. Sorry Carl. Not calling you out. Was just going through some posts that looked relevant to what I put below.

11 hours ago, porina said:

I'm not motivated enough to look up the details of exactly what YouTube are doing, or if I even can as I'm way too small for that.

 

Again drawing from my earlier example, how that worked was that the share broker withheld US tax from everyone unless you provide to them certification you are exempt. So if similar were to work here (not saying it is!) then by default YT would hold applicable US taxes, unless you can show them they shouldn't and they can release the full amount. The detail will be in just what tax information you have to/can provide to them and what they do with it.

Looks more to me like Google got in trouble for something.

Spoiler

https://www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z

 

[IkeaGnome]

1 minute ago, SGT-AMD said:

Its very possible that the IRS is looking into how Alphabet is collecting taxes, and this came up

This is 3 years old, but about right for the amount of time for changes to taxes and legislation.

https://9to5google.com/2018/01/24/google-adsense-reporting-higher-payouts/

[Kisai]

2 hours ago, SGT-AMD said:

Its very possible that the IRS is looking into how Alphabet is collecting taxes, and this came up

It probably came about from streaming Partnerships. Superchat's are tips, not donation. 

 

See Twitch

https://help.twitch.tv/s/article/amazon-tax-information-interview-and-irs-annual-reporting-faq?language=en_US#00

Quote

What’s new in 2020 for US payees?

The Internal Revenue Service (IRS) is requiring nonemployee compensation (e.g. service income) to be reported on the Form 1099-NEC to U.S. payees, where it was previously reported on Form 1099-MISC. Your royalty income will continue to be reported on Form 1099-MISC.

If you earn income reportable on Form 1099-MISC and Form 1099-NEC (e.g. royalty and service income), you may receive two (2) separate tax forms. 

 

I am a non-U.S. individual or I represent a non-U.S. company. Do I need to give you my tax information?

Twitch requires all non-U.S. payees to provide valid taxpayer identification information by taking the tax information interview to certify your non-U.S. status by completing IRS Form W-8 or Form 8233. A taxpayer identification number (TIN) is not required unless you wish to claim a reduced rate of withholding tax.

 

Many people make the mistake of calling tips "donations", which aren't taxed, and require you to be a registered charity. 

 

 

https://www.lawinsider.com/dictionary/service-income

 

In this case, tips automatically charged are considered service income (wages.)

 

To the extent that matters, it's likely that youtuber's doing streaming were not making this distinction, and probably claiming superchats as gifts.

[AlTech]

Honestly this is a load of BS.
 

Creators shouldn’t be punished for the fact that YouTube is an American company. 
 

I am not a fan of this move and I can only recommend non-US citizens stop making money on YouTube because of this.

[Bombastinator]

4 minutes ago, AluminiumTech said:

Honestly this is a load of BS.
 

Creators shouldn’t be punished for the fact that YouTube is an American company. 
 

I am not a fan of this move and I can only recommend non-US citizens stop making money on YouTube because of this.

What is weird for me is that I always assumed this had been happening since YouTube’s inception.  I’m a bit offended that it wasn’t.  This is the way international business works.  If YouTube was French or Canadian or German or something the same thing would be happening.  Or probably would have happened long ago. The complaints about its “unfairness” strike me as silly.  This is something was always law but apparently that wasn’t enforced but now is. What is odd to me is that it wasn’t already.  

[wamred]

On 3/12/2021 at 10:02 PM, TempestCatto said:

With all this new revenue coming in, does that mean those 40 year old potholes will finally get filled?

That would be nice I wish lol 

[Brooksie359]

On 3/12/2021 at 9:30 PM, huilun02 said:

Google/Youtube is NOT a tax authority

If they made this call, it means said tax is going to Youtube and not the state

I would disagree. I mean most people who work in the US have taxes taken out of their paychecks just like this. Its not an abnormal practice and to say that youtube must be pocketing the money is simply misleading at best and straight up lying at worse. 

[dalekphalm]

14 hours ago, AluminiumTech said:

Honestly this is a load of BS.
 

Creators shouldn’t be punished for the fact that YouTube is an American company. 
 

I am not a fan of this move and I can only recommend non-US citizens stop making money on YouTube because of this.

They’re not being “punished”. 
 

Why would you think that?

 

Simply YouTube is enforcing tax law more aggressively now. Likely because of some chat the IRS had with them. 
 

If you do the proper tax paperwork (as any self employed/business owner should), AND your country has a tax treaty with the US (over 80 countries currently do), then you will 

get ALL your withholdings back. 
 

The wording even implies if you file the correct paperwork ahead of time, you can reduce or eliminate the withholdings all together. 
 

People, if you’re making money from YouTube, it’s a business. And you need to file and pay taxes on that. As Non-Americans making money off of an American platform, there are tax laws you have to follow. 
 

This isn’t a scam. YouTube isn’t pocketing the extra money. And (assuming tax treaty), you’re not paying double tax. 

[Bombastinator]

3 minutes ago, TheReal1980 said:

Socialist heaven. Thanks Biden.

Not sure whether I want to reply “People paying taxes?  Yeah trump apparently wasn’t big on that one” or just report the post as political.  

[Lurick]

15 hours ago, AluminiumTech said:

Honestly this is a load of BS.
 

Creators shouldn’t be punished for the fact that YouTube is an American company. 
 

I am not a fan of this move and I can only recommend non-US citizens stop making money on YouTube because of this.

Because taxes only exist in America right? Or should you hide your earnings made with a company not native to your country because reasons?

[The Blackhat]

16 hours ago, AluminiumTech said:

Honestly this is a load of BS.
 

Creators shouldn’t be punished for the fact that YouTube is an American company. 
 

I am not a fan of this move and I can only recommend non-US citizens stop making money on YouTube because of this.

Someone didn't read at all.

[IkeaGnome]

4 minutes ago, The Blackhat said:

Someone didn't read at all.

Right?

Spoiler