Malaysian YouTubers Will Have To Pay Taxes To The US Soon
The YouTube Partner Program (YPP) allows content creators to generate income from ads as long as they have more than 1,000 subscribers on their channel. But Malaysian YouTubers under YPP will soon be required to pay taxes to the United States, and this could start as early as June.
According to a YouTube spokesperson, US tax laws require Google (YouTube’s parent company) to withhold taxes when non-US creators makes money from viewers in the US. YPP creators will be required to submit relevant tax information to determine whether any US withholding taxes apply and where applicable, YouTube will deduct US taxes from creators’ earnings starting later this year.
YouTube adds that for content creators who don’t submit their tax info by 31 May, the company may be required to deduct up to 24% of their total earnings worldwide.
However, those who submit the necessary info and are eligible for “tax treaty benefit” will only have to pay up to 15% of earnings from viewers in the US. But sadly, this doesn’t apply to Malaysians.
Since Malaysia doesn’t have a tax treaty with the US, Malaysian YouTubers are likely to be subjected up to 30% deductions from US viewers. The tax deductions will apply to earnings from viewers in the US from ad views, YouTube Premium, Super Chat, Super Stickers, and Channel Memberships.
And it’s not just in the US, the Inland Revenue Board of Malaysia (LHDN) also declares YouTube as a taxable business model under the broadcasting and media category, so Malaysian YouTubers, don’t forget to pay your taxes to our government too!