Indian YouTubers need not panic, explanation in the new tax system.
Google’s new system of levying taxes on content creators for YouTube has caused confusion among many. But it is known that this will not cause any significant problem for YouTubers in India. It also has a great advantage. Let’s check one.
Why pay taxes?
Google has said that Americans should pay 30 percent of their earnings tax on content generated by YouTubers outside the United States. The company has made it clear that this also applies to those in the world who make money through the YouTube Partner Program. Up to 30 percent of YouTubers’ income is taxable under the existing tax law in the United States. This is called tax withholding. This is different in each country. In addition, it checks whether the video is posted by an individual or a video posted by a company.
- How to save money while selecting a smartphone
- How to register for COVID-19 vaccination? Where can I get it?
The tax announced by Google is 0-30%. However, under the Double Tax Avoidance Agreement (DTAA) between India and the United States, the tax payable by U.S. citizens on content made by YouTubers in India is approximately 15 percent. However, if you do not provide the tax information as suggested by Google, YouTube’s entire revenue may be withheld and then taxed at 24-30%.
Indian YouTubers should never be afraid, why?
The main reason is that the content created by Indian YouTubers is mostly viewed by Indians. Only about 15 percent of YouTubers from India have viewers in the United States. Many of them are content creators in English. Even for them, only a small percentage of viewers are in the United States. In other words, suppose the video released by Indian YouTuber gets 1 lakh views. If 1000 of these views belong to an American audience, the tax will be on the revenue generated from those 1000 views.
But if there are viewers in the US, YouTubers will get more revenue. It is said to be 3 to 10 percent higher. There is a difference between getting 1000 views in India and getting 1000 views in the US. Taxes are a fixed percentage of income in the United States. Advertising revenue from major YouTubers in India is lower than that of YouTubers in 70 countries around the world.
Advertising revenue for Indian YouTubers is about a quarter.
Only one-fifth of the total revenue of major Indian YouTubers comes from Google Ads. Google Ads generate only 20% of the total revenue that some major YouTubers receive. The other 80 percent comes from collaborations with brands. But the new rules could make businesses’ YouTube accounts more problematic. You may have to pay taxes, especially if you make money by streaming songs and stuff in the US.
Every YouTuber in YouTube’s Creator program now has to provide taxation information. This will provide accurate information about YouTubers, which will increase the credibility of the content and YouTube. However, YouTube’s new move comes at a time when people making money through social media are trying to spread their service through various platforms without relying on any one medium. In any case, the conclusion is that the new rules may not cause significant financial loss to the average Indian YouTuber.
Hi Guys! I’d prefer to welcome you to my blog site. On this blog site, I bring Technology News, Windows tips, Android tips, Android apps, Science, Laptop review, Mobile review, Gadget, Blogging, and How to Download, and far more. Friends !! Make my day _ by subscribing and commenting _ to my blog site.! Many thanks. Lotustechtips