‘Youtubers around the world should report money earned in the United States.’
Announcement of “tax withholding from June”
In case of non-reporting, 24% of total income may be collected.
For channels with 1000+ subscribers per year
Korean YouTubers must also report
This is a notice posted by Google on the YouTube customer center on the 9th (local time). This notice was also posted on the Korean website. An e-mail notice was also sent to YouTubers. The targets are those who make money with YouTube, that is, subscribers of the’YouTube Partner Program (YPP)’. Channels with 4000 hours of video and 1000 or more subscribers in the last 1 year subscribe to YPP, place ads on videos, and receive ad revenue from Google. YPP YouTubers can find out in which countries their videos are distributed and earn income such as advertisements and super chats through their Google AdSense account.
YouTuber taxation method
Google announced that “Google can withhold US tax from June 2021 as early as June 2021 on income from US viewers,” and “Please submit US tax information to AdSense as soon as possible.” He also said, “Youtubers who do not live in the United States should also submit US tax information.” If you don’t submit your tax information by May 31, Google said you could withhold 24% of all your earnings on YouTube in U.S. tax. If you don’t cooperate with prior notification, you can count money earned in other regions as income and pay taxes to the US. Google has also guided the Internet document form.
According to Google’s decision, domestic YouTubers with many overseas subscribers, such as K-pop content, must report even if they do not have any income from the United States. In addition, if Google withholds tax from domestic YouTubers, the amount of tax paid by YouTubers in Korea may fluctuate according to the Korea-US Double Taxation Prevention Treaty.
Google is strengthening its profit business for YouTube. This revision of the terms and conditions is also an extension of that. It means that it will raise more profits and clarify tax issues. In a notice, Google said, “Google is responsible for collecting tax information, withholding tax information, and reporting it to the IRS when YPP creators earn royalties from viewers in the United States.”
As a basis, the provisions of the “nonresident alien withholding tax” in Chapter 3 of the US Federal Tax Code were cited. The law is not new or changed. It was originally the law.
Google also changed the YouTube terms and conditions in November of last year. It is said that advertisements that were only attached to videos above a certain standard can be applied to all videos from 2021. It means that YPP also puts advertisements on YouTubers’ videos, and Google said that the profits from those advertisements would be owned by Google alone.
Google’s decision will make YouTuber income and taxes more transparent in the United States. However, Korea is still’black’. Google does not disclose the income of individual YouTubers to any government outside the United States.
The IRS has no way of knowing their income unless the YouTuber reports’I made this much’. YouTuber’s advertising revenue is distributed by overseas Google headquarters. In 2019, the total number of single media creators (such as YouTubers) who reported their income to the National Tax Service in Korea was only 2776. Their average reported income was 315 million won.
In this regard, the’YouTuber Tax Evasion Prevention Act’ (Democratic Party lawmaker Yang Kyung-sook) is pending in the National Assembly. Those who receive more than 500 million won deposits through overseas financial accounts are required to file a tax return.
Reporters Shim Seo-hyun and Kim Jeong-min [email protected]
