World’s largest video streaming service, YouTube has made some adjustments on how it remits taxes to the United States Government. – By Gerald Gekara.
In the new regulations, creators from Kenya and the rest of the world will be remitting fees to the United States, even those who don’t live in the region.
In an email going out to YouTube creators, Google informs creators that it is now required to deduct taxes for the United States from all channels, even those owned by creators who don’t reside in the United States.
“We’re reaching out because Google will be required to deduct U.S. taxes from payments to creators outside of the U.S. later this year (as early as June 2021). Over the next few weeks, we’ll be asking you to submit your tax info in AdSense to determine the correct amount of taxes to deduct, if any apply.”
However, if one fails to remit the taxes to google, YouTube will subtract their total earnings to recoup.
“If your tax info isn’t provided by May 31st, 2021, Google may be required to deduct up to 24% of your total earnings worldwide.” YouTube added.
Creators argue that the taxes do not concern them as none of it will be used to benefit them here in Kenya.
“Say you, a Kenyan creator, makes Ksh. 200,000 a month and have a relatively large US viewership. What they will do now is 30% (60,000). You STILL have to file your own taxes to KRA, So maybe another 30%. You’re left with Ksh.80,000 all the way from 200,000. Thats insane!.” said one creator.
He added that it is unfortunate that the taxes will not in anyway help them, as they are remitting to a foreign country.
The regulations come at the backdrop of the newly introduced KRA Digital Tax Service. The obligation will see creators part with another 1.5% of their total income.
