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| Seen above is an updated YouTube tax policy posted on its help center. Screen capture from Google |
By Lee Min-hyung
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Following the announcement from the world's largest video streaming platform operator, non-U.S.-based YouTube creators could be subject to payment of U.S. taxes from June 2021. Google urged YouTubers across the globe to submit their tax information by the end of May.
The policy is raising concerns that Korean YouTubers might end up being hit for more taxes, as Korea's National Tax Service (NTS) started collecting tax from them in September 2019 when it created a new code for content creator taxation.
The NTS said it would discuss the issue with the Ministry of Economy and Finance. "It has not been confirmed as to whether we will offer a tax deduction for YouTubers here facing an additional tax burden in the U.S.," a spokesman from the service said.
Chances are good that Korean YouTubers could receive a tax reduction here if they have to pay more due to the U.S. policy update. This is in accordance with a Korea-U.S. double taxation treaty.
"Under the treaty, YouTubers facing double taxation should be able to receive an income tax deduction here, but this is not confirmed so far," the spokesman said.
In 2019, media content creators here ― including YouTubers ― generated a combined income of 87.51 billion won ($77 million), according to data from the NTS. The average yearly income for each creator reached 31.52 million won.
Those in the top 10 percent income bracket accounted for more than 68 percent of the total creator income during the period. The top 1 percent of Korean creators generated average annual revenue of 671 million won in the same year, according to the NTS data.
Google cited Chapter 3 of the U.S. Internal Revenue Code as the reason for the updated tax requirement for YouTube earnings.
"All monetizing creators on YouTube, regardless of their location in the world, are required to provide tax information," Google said, urging YouTubers worldwide to provide their information by May 31. "Google may be required to deduct up to 24 percent of your total earnings worldwide." Any YouTubers in the world are subject to the U.S. taxation for revenue drawn from viewers in the U.S. from ad views and other pay services ― such as YouTube Premium, Super Stickers and Channel Memberships, Google stated.
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