Recently, exactly on March 10, 2021, Google officially announced the tax declaration on the Google Adsense account with the partners making money on Youtube. The same goes for an upgraded Google Adsense Content account from Hosted that also has a notice to check tax information on the account.
And today’s article I will guide how to add Google Adsense tax information on your account so that you can complete the declaration and comply with Google’s general regulations on tax deduction when making money with Adsense.
Accurately understand the content of Google Adsense tax notice
You are being notified of Google Adsense tax related content. You should not be too worried when you see this message.
The main content of this policy update of Google is the announcement that it will withhold and tax income for YouTube content creators (Youtubers) who do not live in the US.
This means that YouTubers in Vietnam and other countries outside the US will have to pay tax on their income earned from Youtube when there are viewers from the US.
And exactly what is notified will be:
“All YouTube creators and monetizers, no matter where in the world live, are required to provide tax information. Please submit your tax information as soon as possible.”
The tax rate from the income of Youtubers will be based on many factors. For YouTubers living outside of the US, if they declare tax information before May 31, 2021, they will be subject to a 30% tax on revenue from viewers in the US.
Meanwhile, if you don’t file a tax return, YouTubers will be taxed 24% on revenue coming from viewers in every country.
This means that if you declare tax information, you will:
- 30% tax deduction if the revenue from Youtube channel comes from the United States.
- No tax deduction (or country-by-country lower) for viewers from other countries.
If you do not declare your tax information before June 2021, you will:
- Default to deduct 24% tax on account on revenue generated from any country in the world.
If you are making money on Youtube, please quickly declare tax to apply the correct Google taxable rate for each country and not affect the Adsense payment process on your account.
Follow the instructions below to make a tax declaration on your Adsense account.
How to add Google Adsense tax information
Access to your Adsense account, you will immediately receive a notification to check the addition of tax information on the account. Actions can be taken right on the notification.
Or access your account and select Payment/Settings/Manage settings select US tax information.
You will be redirected to the action authentication on the account by entering the Google Adsense login password.
Follow the steps below to declare tax and receive the correct tax deduction on your Adsense account.
Step 1: Select Adsense account type
You will answer a few questions before adding US tax information. If you are an individual, then you choose the account type Personalfor the Adsense account you are using. Then press Next.
You will select No not a US citizen. Press Next.
Step 3: Declaring Google Adsense tax according to form W-8BEN
Here, you will choose the tax return form W-8BEN to declare when you are not a US citizen. Click USE FORM W-8BEN
Keep in mind that when you make money online that involves the United States, it’s usually very easy to report this W-8BEN form. Similar to doing affiliate on CJ (Commision Junction), you need to declare tax to enter payment method.
You will enter the declaration information according to the form W-8BEN.
Section (1) Tax code
You enter Personal Name is your name on Adsense account. Other options as below:
DBA (trade name) or affiliated single-member entity: Ignore
Country of nationality: Vietnam
Foreign TIN code: Ignore
ITIN or SSN: Ignore
Section (2) Address
You should go to the “Settings” section of your Adsense account to get this address information correct and fill it out here.
Tick select the same mailing address as the permanent address if nothing changes (should be selected).
Section (3) Tax Agreement
This part you choose No and press Next.
Section (4) Preview of documents
Click to review the completed tax return form, tick to confirm and click Next.
Section (5) Certification
Certified by entering your full name. Click Yes, I am the person listed in the signature section and I will complete this form myself. Press Next.
Section (6) Activities and Services Taking Place in the United States and Affidavit
You choose as below in this last step. Then press SEND.
At this point you have completed submitting the tax form to Google Adsense. Soon the tax form was approved.
And you also receive email approved tax information.
So you have completed the tax return on Google Adsense. Too simple, right?
Should I declare US tax on Adsense?
If you are Vietnamese and have nothing to do with the US other than making money through Google Adsense on Youtube, you just need to make a tax return and add the correct Google Adsense tax information as above to receive the correct tax deduction. regulations.
This work is necessary if you want to add a payment method as well as apply the correct tax deduction for each country when making money with Google Adsense.
If your Youtube channel has almost all of its revenue from the US, you can consider declaring tax and having a 30% tax deduction or not declaring it for a default 24% tax deduction.
And if your Youtube channel has a very low and very low origin from the US, we have to declare Google Adsense tax to not be subject to the general deduction of 24% in all countries, right?
However, this is an official notice from Google and you must comply with the full tax declaration to avoid any trouble later.
I noticed that before the tax declaration announcement, most Adsense accounts had the feature of adding payment methods turned off.
When you make a Google Adsense tax return, you are allowed to add a payment method and the payment is released on time around the 21st of every month.
I own an Adsense Content account upgraded from Hosted and currently only make money from Website content, but I also declare full tax information. If there is a notification, please follow the instructions above.
Above are some instructions to help you add Google Adsense Tax information and procedures for current tax deduction regulations when making Adsense money on your account. Exactly this tax deduction will be applied from June 2021.
For example, a publisher who is making money online with Google Adsense Content on the web platform, AdMod monetization on the mobile app platform is not currently listed, must declare under this form. But I think the future will have to do this only.
Subjectively, I think there is a tax deduction when making money on Youtube because you are using the hosting system provided by Google/Youtube located in the United States, so viewers from the United States are obliged to collect tax on them. these active.