Hi Yes, All right, I'll talk about it because everyone wants me to talk about it. Apparently it's this new Youtube tax thing where they're going to charge or the Us government Uncle Sam is going to charge Youtube content creators 24 or those outside the Us anyway. which is me. And you know a good lot of content creators out there and well, is it true and what's happening? Well, it's kind of partially true.

It depends. It's going to highly depend upon the individual Youtube content creator, but all con content creators should have been contacted about this. And when you log in, you get this at the top Important creators outside the Us. Prepare to submit your tax information in Adsense to ensure potential taxes on your earnings are accurate.

And if you click on, get started here. It takes you over to the Us tax requirements for Youtube earnings. Let's have a read, shall we? Google may begin withholding U.s taxes on earnings you generate from viewers in the Us. That's key as early as June 2021.

Please submit your Us tax info in Adsense as soon as possible. If your tax info isn't isn't provided by May 31st, Google may require to may be required to deduct up to 24 of your total earnings worldwide. If you're a creator in the Us, you may have already submitted your text info. Check your tax info in your Adsense account to be sure.

So this is only applying to non-us content creators. Whereas before, Youtube didn't care about, there was no requirement from the government from the U.s government to actually, uh, take taxes out. But apparently it looks like Uncle Sam is, uh, giving the old tap on the shoulder to Youtube and said, hey, hmm, we've got uh, companies paying you this ad money and you've got these content creators who have viewers in the Us and somehow they're not paying tax on that income that comes from these advertisers. We'd like a part of that, please.

So yeah, it hasn't been a problem for the last. oh I don't know. 12, 13 years, or however long Youtube's doing the adsense uh program for and back when you had to be invited By the way. Now anyone can do it Anyway, when I was a boy, now they've decided no.

If you've If you're an international Youtube content creator and you've got viewers in the Us and you're earning advertising revenue, then we want a cut of that advertising revenue from the Us viewers. So really, technically, if you're an overseas Youtube content creator, say you're in Australia and you're only doing like local Australian news or something, so you've got no Yankee viewers whatsoever, then really, this doesn't really apply to you. It doesn't matter, they should not, in theory, take out any tax. although I would still recommend going through and filling out the form.

But if you're talking about my channel I've got between like it's usually like 20 to 25 of my audience are from the Us. So it depends when you take the stats and over what videos and all sorts of things. But yeah, you know it's around about 20 percent Say something like that. So in theory, I could get up to 24 uh, Uncle Sam tax deducted out of my Youtube earnings from 20 of my adsense revenue.

That's assuming that the adsense revenue is equal for Us viewers as it is to overseas. And really, you can't get that info that I'm aware of anyway. They don't break that down. So basically, you know, 24 tax on 20 percent of viewers of my adsense income is really only 5, even if I was getting the tax of the full 24.

But it turns out many countries, including Australia, actually have, uh, tax. You know, sharing obligation agreements. whatever it is with the Us. So apparently I'm going to pay a lower tax amount on that.

so it's not really much. But I can understand why. a lot of content creators this could be a big deal. especially if you are.

You know, going to get taxed at full 24 because if you don't know, Youtube already take like a 45 cut of the ad revenue that us creators get. I mean, it's not like they pay us and in charge of it like it's taken out before it even gets to us, but they're fairly open about that figure. I believe it's about 45. So if an advertiser pays a hundred dollars for example, to a content creator for putting the ads on their videos, the content creator will only get 55 of that.

And of course, Youtube aren't going to be nice and say, oh, look, don't worry, we will absorb any taxes. No, they're going to pass it on. Would it be nice if Youtube went? well. Okay, look at Uncle Sam's making us take this tax out.

now. How about we go? Your Harvey's in it? But no, they're passing on the full amount of tax. And really, I can't blame them because well, it's not Youtube's fault, it's Uncle Sam. And really, this doesn't surprise me at all.

I'm surprised it's taken them this long to actually do it. Whether or not where they're getting the idea that they can actually tax the money going from like, in theory. Is it any company? Let's say it's an Australian company paying to advertise on Youtube, Then can they tax that go into American audiences even though the content creator is Australian. It's weird.

So I don't know if it's only like U.s companies paying for advertising and then it's a percentage of that. If it is, then it's going to be even lower. Which is good. But anyway, there's nothing new here at all.

If you're uh, outside the U.s you'll be more than familiar with the W8 Ben E form the infamous W8bne form because it's pain he asked because countless companies make you fill this thing out. Some of them make you, actually, you know, print it out and actually do it and scan it and send it to them and others are much nicer. They'll have like an online electronic version or they'll only ask you a few simple questions and then they'll have like back end software which automatically fills it out and does everything. uh for you.

which is really quite nice. But yeah, the famous uh Benny Eight form. It's a certificate of Status of Beneficial Owner for United States tax withholding and reporting. goodness.

Anyway, it's it's famously, uh, notoriously ridiculously hard to fill in and like. Unless you've got a guide. there are like guides to doing it. complete guide for Australians and it's different for other uh, companies.

Guide to completing the tax forms and you know various companies will have this and they'll tell you you know how to do it and what to fill in and you know also their what to not touch and how not to confuse things and it's just it's yeah, it's all over the shop anyway. Um, yes, there's been eight form. nothing new. So yeah, basically I think I haven't gone through the process yet, but I think what they're asking you for is to basically fill out this information.

They should have a nice, uh little online guidy thing and you go into your adsense uh thing and you fill it out. and Bob's your uncle apparently. But yes, I expect a uh, drop in revenue by doing this. As I said, maybe like, you know, a few percent something like that.

So you know I can understand how if Youtube adsense revenue is your only income For a Youtuber, you know, any extra tax. Especially as I said, if you're getting like the full 24 and you're all of your audience happens or you know, major 90 of the audience happens to be in the Us or something, then yeah, that can be a significant chunk of. um, you know you're already reduced by Youtube. Although we don't really realize that we just because we just get like a check every month, not a physical check anymore.

You just get, um, yeah, put into your bank account every month Youtube's already taken out. It's 45. and yeah, no worries. But to have a quarter of that go.

That's A. You know it can be a big deal, but the majority of my income doesn't come from adsense revenue anyway. So this is not a big deal for me, but other content creators. Yeah.

and there's all tax withholding stuff. How will this affect my income on Youtube? So anyway, let's have a look at the details. How will this affect my income? Only the portion of your earnings from viewers in the United States will be subject to tax withholding and reporting. If you provide valid tax information, the exact rate of tax withholding will be determined by the tax info you provide to Google.

You can view your tax withholding rate. Okay, so it looks like it will calculate it. Okay, so anyway, let's go through the process. Uh oh what? if I don't earn revenue from viewers in the Us or would submit tax information? You've got to do it regardless.

Yes, that doesn't surprise me. And this is interesting. Does this apply to my other Adsense earnings? Let's say you had them on a website or whatever. Um, you know, I've technically probably still got.

You know, adsense ads on old websites? I've got. You know, giving me, you know, a few tens of cents a day or something. Income. Uh, if you provide valid tax info, the U.s withholding taxes under chapter three should not should only apply to your Youtube earnings.

So that's interesting. It's specifically as if Uncle Sam has targeted Youtube. They don't care about Adsense, They care about Youtube. And here we go: I'm in Adsense.

Oh, my earnings are at risk. Um, you need to fix some ads.txt file issues to avoid a severe impact on your resume. Low revenue? Yeah, that's coming from my old website. Something? Meh.

But yes, they've got this here too. Check if additional tax information is required or Youtube creators and partners will require to submit tax information to ensure any applicable taxes on your payments are accurate. So there you go. Four bucks, 27 I earned.

uh, last month? 4479 Aussie bucks. That's interesting because I thought that they pay. Oh yes, it automatically converted the revenue that showed in the Youtube one I believe is Us dollars. Um, I rarely log into Adsense.

This is probably the first time in uh to get payouts from Google. Please make sure your tax this will take a few minutes, add tax info and there you go. It asked me, uh am I a citizen no Select W8 yep W8 bin Form: Oh Ben E Form: Yep, I got to start the form. Hopefully it'll just be a few questions and it won't like make me fill in the whole damn thing because that's going to be a pain in the ass.

Australia, Australia, not Austria. Yeah, it looks like yeah, you put in your foreign tax identification number. It's called a tax file number a Tfn here. so I presume that we put that in address tax treaty.

Yeah, it's easier than filling out the regular uh W8 Ben form. So yeah, okay here's where they I ask you, are you claiming a reduced rate of withholding under a tax treaty? And if we call that up, the U.s has income tax treaties with many foreign countries. Under these treaties, certain residents may be eligible to pay a lower tax rate or not pay U.s tax at all on some types of income from sources within the U.s And I'm going to click yes because I believe Australia is in the list. Okay, it looks like this is the list of countries which have tax treaties with the U.s.

There you go. Australia is one of them. Article and paragraph As a tax resident. Yes, Motion and Picture Tv Article Seven Paragraph One withholding Rate: Zero percent Bargain in this one.

Motion Picture Tv Youtube: Five percent or thirty percent. I'm gonna go for thirty Five Five percent. No, I don't have any permanent establishment in the Us. Other copyright, other, Copyright Youtube always choose them all.

Is that if like I copyright troll someone or something, maybe So does this mean I'm gonna pay zero percent tax on Adsense revenue? I don't know what the difference between you know, Youtube, Google Play and Adsense is, but it looks like it's either zero or five percent. so you know it's pretty low. So it's basically going to be like at most five percent of that, uh, 20 of my U.s um, audience presuming that the income is equally split across. uh, you know.

Same for each country. Yep, and it actually shows you what the form. Yep, it actually fills it out for you. Nice one.

Youtube Thank you very much. We don't have to because trust me, it's a pain in the ass. So there you go. I confirm I have reviewed as best of my knowledge I believe they are true, accurate, complete blah blah blah blah blah and a penalty of perjury.

In a country which I don't even reside in, has the individual or entity identified in the tax Identity section performed any activities and services for Google within the Us. I've been making videos for 12 years. Does that count if you select? No, You certify that Google doesn't pay you or your organization for services or activities performed in the Us. Yeah, I think that's the whole point of this thing is that yes, I do performed activities and services for Google within the Us that has previously received payments and submit.

Yeah, Yay! How difficult or easy was it? Oh, I won't give it a full smiley. I'll give it a you know there. So there you go. Those are my rates.

Um, for services. Uh, zero withholding rate is the percentage of income held from your payments and sent to the Irs as tax. So yeah. services.

Um, in theory, I should only get zero percent or five percent depending on what what it is. So so there you go. It doesn't sound like a huge deal for me, but as I said for other content creators, uh, in certain countries that don't have those, uh, tax treaties with the Us could certainly be. they could certainly lose up to 24 their income.

And there's really nothing you can do about that. Uncle Sam wants a piece of their pie and they're going to get it. And they're going to spend it on whatever thing you don't like because I almost guarantee they'll spend it on something you don't like. So if you're concerned that, uh, one of your favorite Youtube content creators is going to get hit by this thing, or even if they're not, um, show them some love on the other uh platforms if they're on Patreon, if they're on subscribe star, they step crypto donations if they sell merch.

If they have products like I do on the website, you can buy from, you can support in many, or you can just do, you know, paypal donations or whatever. There's many different ways to support your favorite Youtube content creator and I highly recommend you do. Whether it's go watch them on Odyssey, for example, I get quite a decent income. I actually make more money on Odyssey per view.

in fact, about 15 to 20 times. Well, last time I calculated it was about 20 times more revenue like as in dollars per view than or per thousand views on Odyssey than I got on Youtube. So I it's doing really well. So yeah, follow your favorite creator including myself.

I'm up to almost 60 000 subscribers now I think on Odyssey. Anyway, there you go. There's um, yeah. Uncle Sam.

This is not Youtube's fault. Uncle Sam is some clever cookie. uh, working for Uncle Sam. Yeah is realized.

Hey, there's U.s viewers and uh, you're not getting out of that loophole. You've been doing it for a decade or more. No, we want our cut. thank you very much.

So yeah, could be a big big deal or could not. Depends anyway. hope you found the interest in Catch You next time.