From June 2021, YouTube will deduct US taxes from payments made to creators outside the United State of America. As per the rule, on failing to submit their tax info by May 21, creators will be asked to pay up to 24 percent of their total earnings.

If you are an Indian Youtuber, this might be the right time to get your tax documents in place. Failing to do so could cost you $24 for every $100 you make from the video-sharing platform.

In a recent announcement, search engine giant Google stated that it would start deducting US taxes from payments made to creators from outside the United States of America, starting June 2021.

The taxes would be applicable on revenue made from ad views, YouTube Premium, Super Chat, Super Stickers, and Channel Memberships will be taxable.

What does the rule say?

"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," Google said in an email to creators. "If your tax info isn't provided by May 31st, 2021, Google may be required to deduct up to 24 percent of your total earnings worldwide."

While there is no way that one can be protected from this rule, all Indian creators need not necessarily shell out 24 percent of their earnings. Google explained that the 24 percent cut was applicable until Google has the content creator's completed tax info. Once the info is submitted and verified, the final tax deduction will amount to a slightly lower 15 percent, thanks to the tax treaty relationship between Indian and the US.

But for creators who do not fall under this tax treaty benefit umbrella, the final tax deduction will be a whopping 30%.

YouTube in India

The news comes as a big blow to Indian creators, who will stand to lose much, like their counterparts across the world, with this new tax rule. The video platform has attracted creators from across the country, making India the second most popular country -- after the US --of top YouTube channels with over 60 channels featuring more than 10 million subscribers.

Youtube in India has facilitated the discovery and nurturing of talents such as Prajakta Koli ( 6.12M subscribers) and Carryminati (29.2M subscribers), who have gone on to bag opportunities in the Hindi film industry, the biggest in the world as well as the giant OTT streaming platforms, Netflix and SonyLIV.

On the other hand, it has also seen the likes of actor Alia Bhatt and cricketer Ravichandran Ashwin, among others using the platform as a virtual extension of their work and brand.