We Need You To Update Your Tax Information!

We're reaching out because Google will be required to deduct US taxes from payments to channels outside the US later this year (as early as June 2021). Over the next few weeks, we'll be asking channels to submit their tax info in AdSense to determine the correct amount of taxes to deduct, if any apply. If a channel's tax info isn't provided by 31 May 2021, it may be required to deduct up to 24% of total earnings worldwide.

Why is this happening?

YouTube will soon be updating its Terms of Service, under which earnings from YouTube will be considered royalties from a US tax perspective. This may impact the way that your channel's earnings are taxed and, if required by US law, Google will deduct taxes. If any withholding taxes apply, these will be withheld from your payments so that the correct taxes can be paid.

 

Google has a responsibility under Chapter 3 of the US Internal Revenue Code to collect tax information from all monetising creators in the YouTube Partner Programme outside the US and deduct taxes in certain instances when they earn income from viewers in the US.

Do not worry!

We are going to be available to closely work with you to ensure this is resolved quickly and easily. For the large majority of our channels they will not owe any withholding tax due to tax treaties their countries have with the USA. This means that if you correctly fill in your tax information then it will not be necessary to withhold any taxes and your earnings will not change. 

What do I need to do?

We encourage you to submit your tax information in your AdSense account linked to your channel by 31 May 2021. If your tax information isn't provided, it may be required to deduct up to 24% of the channel's total earnings worldwide, not just US earnings.

Here's more info on how earnings may be impacted.

 

You can follow the instructions below to submit your US tax info to Google. Note that you may be asked to re-submit tax info every three years, and that only Latin characters may be used when submitting tax forms (due to requirements by the IRS); learn more here

• Sign in to your AdSense account.
• Click Payments.
• Click Manage settings.
• Scroll to 'Payments profile' and click edit next to 'United States tax info'.
• Click Manage tax information.
• On this page you'll find a guide that will help you to select the appropriate form for your tax situation.

Tip: After you submit your tax information, follow the instructions above to check the 'United States tax info' section of your Payments profile to find the tax withholding rates that may apply to your payments.

 

 

Where US tax requirements apply

Every YouTube creator, regardless of their location in the world, is required to provide US tax info to Google. Under US tax law, it is required to deduct taxes from your YouTube earnings from US viewers, if applicable. The tax withholding requirements can differ depending on your country of residence, whether you're eligible to claim tax treaty benefits and whether you identify as an Individual or a Business. 

•  Creators outside of the US: If you submit US tax info, withholding rates are between 0% and 30% on earnings that you generate from viewers in the US and depend on whether your country has a tax treaty relationship with the United States. The large majority of our creators will fall under 0% withholding tax which means no changes to your earnings!

• US creators: Google will not withhold taxes on earnings if you have provided valid tax info. Most US creators have already submitted their US tax info.

Important: If no US tax info is provided, it may be required to withhold using the maximum tax rate, so it's very important that this information is submitted by May 31st 2021.

Let us help!

Reach out to your partner manager if you need support in regards to this issue. You can contact your partner manager via your normal methods of communication or request that they contact you using the 'Request Manager Contact' option in your dashboard account. We now also have live chat support available for all partners via your MyRitual account!

Thank you!

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