Taxation on Taiwan Youtuber
To comply with the regulations from Internal Revenue Service (IRS) in USA, Google published a new regulation about the tax withholding on global Youtuber last year, which means Taiwan Youtuber is required to be withheld the tax for the income incurred within the territory of USA by IRS as well as declare the individual income in Taiwan. So, a group of Taiwan Youtuber is concerned about the likelihood of double taxation.
Google aims at withholding the income from the views from USA on YouTube, including browsing the advertisements, YouTube Premium, super chats, super stickers, members and other profit-seeking channels. No matter where the location is, the creators are requested to provide Google with the US taxation information. If such information is failed to provide, Google will deduct the amount of income higher up to 24% for taxation, but if the taxation information is filled out and submitted completely, Google will withhold the amount of tax from 0% to 30% for the income solely.
For example, a Taiwan YouTuber received the income USD100 from YouTube, USD10 from the audience in USA, the rest of USD90 from the audience in Taiwan or other countries. For those who provide the complete taxation information, Google only deducts 30% from the income, which is USD3, so the total amount of income after deduction will be USD97. In contrast, for those who failed to provide the taxation information, Google will deduct 24% from the total income USD100, which is USD24, so the total income will become USD76 solely. In conclusion, the above situations which afford much loss is the one unwilling to provide the information.
The calculation formula of the above case is as follows:
Net income with tax information provided: US income 10 + Taiwan income 90 – (10 * 30%) = 97
No tax information provided Net income: US income 10 + Taiwan income 90 – (100 * 24%) = 76
Apart from the payment of tax to USA, the Taiwanese individuals also have to declare the individual income, so plenty of people might be curious whether the double taxation would be occurred. The deducted amount of tax is not the income generated within the territory of Taiwan, so creators still have to declare with “the original total income”. In regards to the payment of tax to Google, it is acceptable to state it in the necessary expenditures to make a declaration and deduction.