There is a high chance this headline left you puzzled. At this point you are probably trying to ascertain your current state of reality. Well you read the headlines right. The new decree obligates Nigerian Youtube content creators to pay tax to the US (United States).
The statement on Google’s support page; googlesupport.com., validates the new Tax arrangement for Nigerians. The statement reads;
“Google may begin withholding U.S. taxes on earnings you generate from viewers in the U.S. as early as June 2021. Please submit your U.S. tax info in AdSense as soon as possible. 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. If you’re a creator in the U.S., you may have already submitted your tax info. Check your tax info in your AdSense account to be sure.”
How Does This New Youtube Tax Decree Affect Nigerian Youtubers?
This explicitly means that withholding tax would be collected to Content Creators who earn or make a profit from YouTube. This is not limited to Content Creators residing in the US but also those residing outside the US.
Must Read: 10 Best Comedy Youtube Channels in Nigeria
In essence it affects every YouTube Content Creators, Nigerians inclusive, they are several Nigerians who earn from YouTube.
Official Notification To YouTube Content Creators
Google has gone ahead to notify content creators on YouTube officially, they have been notified via email and the contents of the email is thus:
“We’re getting in touch because Google is said to deduct U.S. taxes from earnings to creators living outside of the U.S. this year (as early as June 2021). Over the course of the next few weeks, we’ll be requesting the content makers to submit your tax info in AdSense to decide the correct amount of taxes to deduct if any apply. If your tax details are not submitted by May 31st, 2021, Google may be required to deduct up to 24% of your entire earnings worldwide.”
What happens Tax Defaulters?
in the event that a creator is categorized as a Business Account, the default retaining rate will be 30% of the US-viewing income.
in the event that a creator account is categorized as an Individual Account, reinforcement retaining will apply, and you will pay 24% of the absolute income around the world.
Must Read: 10 Best Nigerian Travel Bloggers to Follow
Google has likewise referenced in its authority post that “these retention rates will be changed in the following installment cycle once substantial US charge data is given in AdSense.
All content creators especially those in Nigeria should be aware of this coming changes and know how it impacts on their YouTube content earnings, so that are caught unawares when they receive payment from Google for their contents reach and views consumed.