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AdSense Withholding IRS Tax

         

puckparches

4:30 am on Jun 24, 2021 (gmt 0)

10+ Year Member Top Contributors Of The Month



Is the new AS IRS Tax Withholding for all publishers or just for YPP?



[edited by: not2easy at 5:07 pm (utc) on Jun 24, 2021]
[edit reason] clarity [/edit]

puckparches

8:47 pm on Jun 24, 2021 (gmt 0)

10+ Year Member Top Contributors Of The Month



Just to clarify, the question above was for a non-US publisher.

Found the answer:

Q: For non-US publishers with both AdSense YouTube earnings, if they submit their tax forms, will AdSense earnings be tax withheld similar to YT?

A: At the moment, if a valid tax form is provided, only YouTube royalty earnings will be subject to withholding. Adsense services earnings would only be subject to withholding tax if you are performing services in the United States.

ADweb

12:35 am on Jul 4, 2021 (gmt 0)



Hello, I'm trying to find more definitive information on this


@puckparches, is it possible that you could provide a source for the answer you got?
That would be appreciated, thanks.


As of recent (I'm not sure of the exact date), this warning became present in my AdSense account:

Your payments are currently on hold. Action is required to release payment.


Your tax form expired, as a result we put a hold on your account. Please update your tax information as soon as possible.



I haven't heard of any hews announcing these tax changes to regular AdSense earnings, nor could I find any articles discussing this.
I also didn't notice any email notice about AdSense tax changes (except a new email notice today, warning that my tax info has expired).


(Email): Update your information to get paid

Your payments might be on hold for one or more of the following reasons:

No Tax information: Submit or update your tax information as soon as possible to make sure that your payment is included in the next available payment cycle.



I am a Non-US webmaster, who also resides in a country that has a tax exemption treaty with the United States.
I did complete the tax information forms to the best of my current ability, although numerous things are not very clear to me.

After submitting my tax information, this is now shown in my AdSense account:

Payment Settings > Manage tax info:

Approved

Tax forms and withholding (WHT) rates

Form W-8 BEN: Default

Motion picture and TV Default WHT rate: 30%
Other copyright Default WHT rate: 30%
    Services Default WHT rate
: 30%



I would especially like to know the exact meaning of:
    Services Default


I can't find any clear definitions of this, neither what type of "Payment" does regular publisher AdSense earnings fall under.



The feedback from @puckparches may suggest that AdSense publishers are not impacting by these recent changes:

@puckparches
Adsense services earnings would only be subject to withholding tax if you are performing services in the United States.



However, one of the only other comments I could find about this issue, mentions:

https://tehnoblog.org/youtube-introducing-tax-for-youtubers-earning-money-outside-us-by-june-2021/

The Services (AdSense) option is for businesses only – Tax Treaty Article VII


The source of this info is also not clear.


I'd like to know if anyone has more definitive information on whether these new Google Payment tax changes has any effect on regular AdSense publishers or not.

Thanks.

NickMNS

12:49 am on Jul 4, 2021 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



I'd like to know if anyone has more definitive information on whether these new Google Payment tax changes has any effect on regular AdSense publishers or not.

Unfortunately there is no way to get any "definitive information" as your tax exposure is specific to your own situation. You need to consult an accountant or tax professional to be sure. With that said, there should be no difference as no part of your business relationship has changed with Google-AdSense, the only thing is that it is being clearly documented.

ADweb

4:05 am on Jul 4, 2021 (gmt 0)



Thanks for the feedback.

@NickMNS:
Unfortunately there is no way to get any "definitive information" as your tax exposure is specific to your own situation. You need to consult an accountant or tax professional to be sure.


I'm believing that there should be public information that answers my main query:

I@ADweb:
I would especially like to know the exact meaning of:
Services Default

I can't find any clear definitions of this, neither what type of "Payment" does regular publisher AdSense earnings fall under.



For now, I assume (to be on the safer side) that "Services" may include AdSense Publisher payments, as I see no other definitions that may relate to Publisher payments.


Status: Approved

Form W-8 BEN: Other copyright
Other copyright WHT rate: 0%
Claimed


Form W-8 BEN: Services
Services WHT rate: 0%
Claimed


Form W-8 BEN: Default
Motion picture and TV Default WHT rate: 30%




I've went ahead and got Tax Withholding Exemption (0%),
for both my Ad Exchange and AdSense accounts.


I think the issue should be fine for my case now, as the "Motion picture and TV Default WHT rate" likely does not apply to my revenue.

I hope that all non-US publishers do check this out carefully, in case some of these changes could apply to them,
and hopefully avoid any unexpected large tax withholding deductions.

Best regards.

puckparches

2:24 pm on Jul 6, 2021 (gmt 0)

10+ Year Member Top Contributors Of The Month



is it possible that you could provide a source for the answer you got?
That would be appreciated, thanks.


Here is the link: [support.google.com...]

There is no information on AdSense that they will hold any taxes from me, we'll see on my next actual payment.