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youtube to collect tax from content creators.

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by Helvine Achieng March 16, 2021

Kenyan YouTube content creators are expected to submit their tax information to the video-sharing platform by March 31 to avoid a hefty 24% taxation on their earnings. In a new requirement recently shared, the Google-owned service will require content creators to pay taxes to the United States.

YouTube wrote a statement to creators, informing them of the condition, which will begin in June 2021.

“We’re reaching out because Google will be required to deduct U.S. taxes from payments to creators outside the U.S. later this year (as early as June 2021). 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,” reads part of the message by YouTube.

According to the information issued, if a content creator’s tax information is not provided by May 31, Google may be required to deduct up to 24% of the total earnings made by creators worldwide.

YouTube creators monetize their posts through the AdSense service, which allows them to collect a percentage of advertisement revenue from their videos. Providing the information is done by signing into one’s AdSense account, clicking payments, then “manage settings”.

“Scroll to ‘payments profile’ and click edit next to ‘United States tax info’. Click ‘manage tax information’,” the directions offered by Google Support read in part.

The directions state that creators will find a guide that will help them select the appropriate form for their unique tax situations on the page.

“Google has a responsibility under Chapter 3 of the U.S. Internal Revenue Code to collect tax info from all monetizing creators outside of the U.S. and deduct taxes in certain instances when they earn income from viewers in the U.S.” wrote Google in their statement, adding that tax will be deducted from content targeting United States viewers.

As of 2020, there were over 37 Million YouTubers worldwide earning a living from the platform. The tech giant has a wide-reaching audience, with over 2 billion active monthly users.

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