How to Submit U.S Tax Information to Google | How to Settle U.S Tax Within 15% Instead of 24%

Friends you may all gets an important updates either in your email or YouTube studio dashboard  or in AdSense account dashboard regarding the Upcoming tax changes to your YouTube earnings. Friends, this updates is only for Non - US YouTube Creators. So friends here in this post we discuss what happens to your earnings if you submit or not submit the tax info to Google.
 

You must get this update in your email “We’re reaching out because Google will be required to deduct U.S. taxes from payments to creators outside of 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. If your tax info isn’t provided by May 31, 2021, Google may be required to deduct up to 24% of your total earnings worldwide”

It means that Google are directed to collect the tax info from all non U.S. creators to deduct taxes on behalf of the US Government. The deadline for submitting tax info is the May 31, 2021. If you ignore this update and do not submit your tax info than Google will deduct 24% of your total earnings i.e, the revenue earned from viewers in the U.S. through ad views, YouTube Premium, Super Chat, Super Stickers, and Channel Memberships. 
 
This 24% is only for the Individual account type. For Business account type the default withholding rate will be 30% of the U.S. earnings if the payee is outside of the U.S.

If you are an Individual creator and you have not submitted the tax info in that case if your channel earns 1000 dollars worldwide, then Google will deduct 24% of the total earnings i.e, 240 dollars [1000*24%=240].

Now whats happens if you have submitted your tax info to google. Once you submit the tax info, google will deduct only 0 to 30% on earnings your channel generate from viewers in the U.S. and it also depends on whether your country has a tax treaty relationship with the United States.

So, I just say this updates is an hammer on Non U.S Creators. Now let's start how to submit tax info to Google. 
 
 
Step 1.At first you have to login to your AdSense account. If you see the update notification with a link Manage tax info then click on it. 
 
Step 2. Otherwise click Payments option located left hand side menu bar and then click Manage Settings.
 
Step 3. After that scroll down to United States tax info and click on the pencil icon and then click MANAGE TAX INFO.
 
Step 4. After that click ADD TAX INFO. Now verify your account by logging to the AdSense account.
 
Step 5. Now click on the account type i.e, Indivitual or Non-indivitual / entity and click Next button to go forward.
 
Step 6. Now provide your citizenship when asked Are you a citizen or resident of the United States?  Click No and then again click Next button.
 
Step 7. Now you have to select W-8 tax form type. If you are an individual creator then select W-8BEN form otherwise select W-8ECI form and then click START W-8BEN FORM.
 
Step 8. Now W-8 BEN tax form opens. It has six important steps namely Tax identity, Address, Tax treaty, Document preview, Certification and Activities and services performed in US and Affidavit.
 
In the Tax identity, you have to enter your country of citizenship and in the Foreign TIN option you have to enter your PAN number i.e., Permanent Account Number that most of the creators have and skip the US ITIN and SSN option and click Next button. 
 
Step 9. In the nest step you have to enter your address details and click Next button. 
 
Step 10. In the Tax treaty section, if your country have tax treaty relationshep with U.S then select Yes button and then select your country and then click the check box Resident of country claiming treaty with the U.S.
 
After that click check box against Services (AdSense) and then in the Article and Paragraph option select Article 7 and Paragraph 1 and select the desired rate (for Indian publisher it is withholding rate is 0%).
 
After that select Motion Picture and TV (YouTube, Google Play) and under Article and Paragraph select Article 12 and paragraph 2A II and now here the withholding rate is 15%. 
 
After that select Other Copyright (YouTube, Google Play) and under Article and Paragraph select Article 12 and paragraph 2A II and now here the withholding rate is 15%. Finally click Next button to go forward.

Step 11. In the Document preview click the check box "I confirm that I have reviewed the generated tax document to be the best of my knowledge and belief they are true, correct and complete and then click Next button.

Step 12. Now type your name and select the radio button I am the person listed in the signature section and completing this form on my own behalf and click Next button.

Step 13. In the Activities and services performed in the U.S and affidavit section click No and select the check box against I certify that services provided to Google or its affiliates will be performed solely outside the U.S ......  and the select the desired option and finally click Submit button.
 
That's it. Watch this video...
 
How to Submit U.S Tax Information to Google | How to Settle U.S Tax Within 15% Instead of 24% How to Submit U.S Tax Information to Google | How to Settle U.S Tax Within 15% Instead of 24% Reviewed by Mani on March 10, 2021 Rating: 5

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