YouTube will start deducting US taxes from creators who don’t live in the US
9to5google.com
9to5google.com
* Creator doesn’t submit tax info.
* Creator submits tax info and claims a treaty benefit.
* Creator submits tax info, but is not eligible for a tax treaty.
You have to pay your taxes somewhere, if you don't tell Google that you pay them in your country, then Google is in charge to collect the taxes at least for the part concerning US users.
I guess i can close this with the disbelief that content creators setup companies and then use Youtube as themselves. What kind of accounting shenanigans would be required to be a company and content creator on youtube? I am genuinely interested.
> If taxes were deducted from your income, you can claim those taxes as if you paid them to the CRA. Because you have a duty to report all your U.S. income on your Canadian return, the income is deemed taxable as Canadian income. The usually lower U.S. income tax rate could leave you with an amount owing for the difference between the United States and Canadian income tax rates.
So Canadians pay (some) income tax to the US instead of Canada and the US gives us nothing in return? It feels like those are systems that were put in place with the assumption that earning income in the US would require the use of US resources (ie: living in the US).
That’s just a flat out bad deal for Canada and Canadians, right?
I'm expecting a thorough discussion and details soon from Linus Tech Tips since they're Canada-based.
Seems like Canadians got the ability to make money on YouTube in return. Seems like a pretty good deal.
that's only from your perspective, right? All of this is negotiated as part of a tax treaty so I'd presume that they figured the tax flows are roughly equal (eg. how the UPU works), or they have a specific process to settle the difference.
If it was company-contractor relationship, payment wouldn’t be taxable, only the contractors surplus.
On top of that. How do creators abroad get a tax refund for their expenses?
says the European who has never done business with the US and doesn’t know what he is saying...
https://www.irs.gov/businesses/international-businesses/unit...
https://www.irs.gov/publications/p901#en_US_201609_publink10...
> U.S.–U.S.S.R. income tax treaty. The U.S.–U.S.S.R. income tax treaty remains in effect for the following members of the Commonwealth of Independent States: Armenia, Azerbaijan, Belarus, Georgia, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, and Uzbekistan. That treaty will remain in effect until new treaties with these individual countries are negotiated and ratified. Provisions of the U.S.–U.S.S.R. income tax treaty are discussed in this publication under Commonwealth of Independent States.
That's not quite so unreasonable as long as it's reciprocated for US creators operating in foreign markets. i.e. you pay taxes where the viewers are, not (only) where the creator is.
If you don't submit any tax details they'll go after your full world wide revenue as they don't know where it was earned, so it will be important to do that.
I guess it could all be avoided if YouTube added a feature to allow creators from the rest of the world hide content from US viewers but that's probably not part of their business plan.
If I make money from using AWS and my server is hosted in the US region will I eventually get a taxbill for providing a service to US customers ???.
There are plenty of people, myself included who live outside the US and get paid from US earnings with no tax deductions in the US. It helps of course if your country has a withholding treaty like the UK does with the US.