YouTube is going to update its terms of service from June 1: The new taxes are coming in
YouTube is all set to update its terms of service soon and some important changes are coming in, particularly for creators.
YouTube is going to update its Terms of Service soon and has sent a mail out to all its users to clarify these terms and also provide transparency. The video-streaming platform mentions that these terms were similarly updated in the United States in November last year and are npw being rolled out in India. YouTube’s new terms of service will come into effect from June 1 and while these will not “significantly alter your access or use” of YouTube, it’s important to note.
There are three major changes coming in by June 1. First, facial recognition restrictions. YouTube states that users cannot collect any information that “might identify a person without their permission”. And while this has always been a part of the platform’s facial recognition information, they are now making it explicitly clear.
The second feature is about YouTube’s right to monetise. YouTube states that the platform has the right to monetise all content on the platform and this means that ads from channels that are not a part of the YouTube Partner Program may appear on videos.
The third feature involves royalty payments and tax withholding. “For creators entitled to revenue payments, such payments will be treated as royalties from a US tax perspective and Google will withhold taxes where required by law,” says YouTube. We had told you earlier in March that Google had informed YouTubers via an email that it will be “required to deduct US taxes from payments to creators outside of the US”. while YouTubers in America will not have to take on any additional tax burden, this additional tax is going to be levied on YouTubers outside the US.
“Over the next few weeks, we’ll be asking you to submit your tax info in AdSense to determine the correct amount of taxes to deduct, if any apply. If your tax info isn’t provided by May 31st, 2021, Google may be required to deduct up to 24% of your total earnings worldwide,” said Google in the email.
What’s important to understand here is the fact that tax will be deducted from the earnings from US viewers through ad views, YouTube Premium, Super Stickers, Super Chat, and Channel Memberships. You do not have to pay any tax for the money you (YouTubers) are making from viewers outside the US as long as you provide relevant tax documentation.
You can calculate exactly how much money you will end up paying by checking here.