YouTube tells foreign creators they will soon be charged American tax • Hacker News Board

Re: YouTube tells foreign creators they will soon be charged American tax

#151

Post by amscanne » Wed, Mar 10, 2021, 4:27 PM UTC

kevinventullo wrote: post #128

sandworm101 wrote: post #101

Earlier quoted context omitted.

Tax law 101: You cannot turn a transaction for a product into a pair of "gifts" between the parties. Where both parties are subject to contracts for services or payments, there are no gifts. Similarly, all "gifts" from employers to employees are considered non-gift income. A car given to an employee as a "gift" is income to the employee and a taxable deduction by the employer. See Duesenberg (I'm trying to find the c…

Stream donations aren’t really a transaction, though. The streamer is under no obligation to even respond to a donor, and certainly there is no employer/employee relationship.

It’s more complicated than that. A donation to a streamer is much more like a “tip” than a gift, and tips are clearly taxable despite not having any obligations associated with them.

Re: YouTube tells foreign creators they will soon be charged American tax

#152

Post by tssva » Wed, Mar 10, 2021, 4:29 PM UTC

sharpneli wrote: post #130

sandworm101 wrote: post #86

Earlier quoted context omitted.

"we will soon be updating our Terms of Service where your earnings from YouTube will be considered royalties from a U.S. tax perspective (we’ve already made this change to the Terms of Service for U.S. creators in November). This may impact the way your earnings are taxed, and as required by U.S. law, Google will withhold taxes." So you will have to file a tax return and get the money back just like every other incom…

Can you even file an US tax return if you don't have any presence in the US? How do they even identify you if you don't have US SSN?

You apply for an IRS Employer Identification Number (EIN).

https://www.irs.gov/businesses/small-businesses-self-employe...

Re: YouTube tells foreign creators they will soon be charged American tax

#153

Post by gruez » Wed, Mar 10, 2021, 4:31 PM UTC

sudosysgen wrote: post #115

the_svd_doctor wrote: post #36

But why? If you’re not physically present in the US and are not a US citizen, why would you be subject to (income) tax? Or is that not a form of income tax, but something else?

It is a form of income tax, yes. It's on top of sales taxes. And yes this means double taxation..

...like every other country out there that has both income tax and VAT/sales tax?

Re: YouTube tells foreign creators they will soon be charged American tax

#154

Post by the_svd_doctor » Wed, Mar 10, 2021, 4:32 PM UTC

BitwiseFool wrote: post #57

the_svd_doctor wrote: post #36

But why? If you’re not physically present in the US and are not a US citizen, why would you be subject to (income) tax? Or is that not a form of income tax, but something else?

I suppose a non-citizen subject to this tax would have to appeal to their own government and raise the issue diplomatically. But I doubt most nations would be in a position to change the United State's behavior in this regard. Maybe the EU has enough clout to contest this in a court of international law. But that also depends on them wanting to raise the issue in the first place.

Well the US has a lot of tax treaties. But not with all countries.

Re: YouTube tells foreign creators they will soon be charged American tax

#155

Post by zests » Wed, Mar 10, 2021, 4:34 PM UTC

Is this a new rule? I can't find anywhere that actually links or describes any new regulations but I am trying to figure out why this is just happening now.

Re: YouTube tells foreign creators they will soon be charged American tax

#156

Post by yoz-y » Wed, Mar 10, 2021, 4:36 PM UTC

bitcharmer wrote: post #119

systemvoltage wrote: post #112

Earlier quoted context omitted.

Except that Google is an American company.

OP just argued that the reason why Google abides to US law is because it's a US company. Their actions however show they abide to whichever laws are more convenient for them.

What's the problem with my logic? Google has to abide the law of countries with which it does business.

Abiding laws is not a "convenience", it's something you just do. If you don't you get fined: e.g.: https://www.reuters.com/article/us-france-tech-google-tax-id...

The problem with Google being an American company in this case is that maybe you can pull out of China or Australia if the law becomes too cumbersome, but pulling out of the country you are based in is an order of magnitude harder. I feel that you have interpreted my sentence in the worst possible light, but ok.

Re: YouTube tells foreign creators they will soon be charged American tax

#157

Post by nivenkos » Wed, Mar 10, 2021, 4:36 PM UTC

sudosysgen wrote: post #150

xxpor wrote: post #138

Earlier quoted context omitted.

>As far as I know, there is no other countries in the world with such an insane policy. This is inherent in being the most powerful country in the world. The US has the ability to do it, so why wouldn't they? You're not a US citizen, so the federal government cares even less about abstract fairness than they usually do.

Yes, that's why RT picked up the story, because it's a good propaganda piece that shows that the US does not care about fairness abroad, simply raw interest.

Is it still propaganda if it's true?

Re: YouTube tells foreign creators they will soon be charged American tax

#158

Post by LinuxBender » Wed, Mar 10, 2021, 4:37 PM UTC

gruez wrote: post #144

LinuxBender wrote: post #62

Earlier quoted context omitted.

That is probably a strong term. What term best applies to money that has been taxed multiple times?

How are you getting taxed multiple times? I'm not sure how it applies to unemployment income.

That money comes from tax revenue. You already paid taxes on your income once. Now you are getting taxed on it again when it recycles back to you. You will also get taxed on it again when you spend it. There is a flow chart somewhere that shows the myriad of ways the same money is repeatedly taxed.

Re: YouTube tells foreign creators they will soon be charged American tax

#159

Post by the_svd_doctor » Wed, Mar 10, 2021, 4:38 PM UTC

gruez wrote: post #153

sudosysgen wrote: post #115

Earlier quoted context omitted.

It is a form of income tax, yes. It's on top of sales taxes. And yes this means double taxation..

...like every other country out there that has both income tax and VAT/sales tax?

Double taxation usually means being taxed on the same amount by two foreign governments.

Re: YouTube tells foreign creators they will soon be charged American tax

#160

Post by mch0lic1 » Wed, Mar 10, 2021, 4:38 PM UTC

sudosysgen wrote: post #110

tristanj wrote: post #85

This RT article is clickbait and spreading misinformation. The tax is on revenue generated from users in the US, not on all revenue. If creators provide no tax information at all, only then will YouTube tax all global revenue. And YouTube is not doing so by choice, they're a US headquartered company and forced to do this to comply with US tax law. RT is highlighting tweets that are spreading misinformation. For examp…

Sorry, but this is still insane. It makes absolutely no sense that a non-American has to pay up to 24% tax on money from American viewership, and then again pay income tax. As far as I know, there is no other countries in the world with such an insane policy. Being subject to taxes from a country you don't belong to exactly as if you lived there (these aren't sales taxes), is completely unreasonable. Remember, this i…

This is still good deal compared to platform cut/taxing when publishing content on Envato... and there they give jack sh*t about piracy where on youtube you at least can get republished videos that belong to you taken down and continue receiving revenue...