YouTube is making a change to how payments are conducted for partnered creators outside of the U.S. Google announced today that it will start deducting U.S. taxes from future payments from the platform starting later this year.
This will only impact earnings generated by viewers within the U.S. and will go into effect as early as June, according to the official YouTube Creators account.
Google will begin deducting taxes from non-U.S. creators on earnings generated by U.S. viewers through ad views, YouTube Premium, Super Chat, Super Stickers, and Channel Memberships. This will apply to all members of the YouTube Partner Program and a prompt to submit updated tax information through Google AdSense will be sent out over the next few weeks.
YouTube also said that creators could see up to a 24-percent deduction from their total earnings if their tax information is not properly updated by May 31.
This change will impact thousands of creators since the U.S. is one of the biggest markets for YouTube viewership. Deductions based on U.S. viewership, donations, and memberships will likely result in most creators outside of the U.S. losing a significant portion of their main source of income from the platform depending on how much is pulled for taxes.
Google also already keeps around 45 percent of all revenue generated through ads on all videos, along with 30 percent of all Super Chat donations and channel memberships. With this new tax deduction, creators outside of the U.S. will now see even less of the money from these three main pillars of YouTube’s revenue system.
More details about this change, along with responses from the creators who this will impact, are going to be released over the next few days.