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What is the YouTube Tax?

Google is obligated under Chapter 3 of the U.S. Internal Revenue Code to withhold tax from YouTube earnings generated from viewers in the United States.

Creators in the YouTube Partner Program (YPP) are required to provide their tax info through AdSense to facilitate this process.

The percentage of tax withheld from the earnings are determined by a withholding rate (WHT) set by the Internal Revenue Service (IRS) which ranges between 0-30% depending on the country of residence of the creator.

Countries with a tax treaty with the U.S. are however eligible for a reduced WHT rate.

The WHT rates for all countries eligible for the YPP are detailed below.

Countries with Tax Treaties and their Withholding Tax Rates

Some countries have tax treaties with the United States that either reduce the tax burden or completely eliminate double taxation.

YouTube creators that are residents of these countries can claim tax treaty benefits to reduce the tax withheld from their earnings.

This is available on the AdSense tax tool which will identify details of the treaty when filling the tax form.

WHT rates for countries with a tax treaty range from 0% to 15%. For creators that are residents of countries with a rate of 0%, no tax will be withheld from their earnings provided they have submitted their tax info accurately.

It’s essential that valid tax info is provided for these reduced rates to apply. If no tax info is submitted, Google will use a maximum withholding tax rate of 24% on the total earnings and not just those from U.S. viewers.

The tax treaty rates for countries eligible for the YPP are as follows.

CountryTax Rate
Australia5%
Austria0%
Azerbaijan0%
Bangladesh10%
Belarus0%
Belgium0%
Bulgaria5%
Canada0%
Czech Republic0%
Denmark0%
Egypt15%
Estonia10%
Finland0%
France0%
Georgia0%
Germany0%
Greece0%
Hungary0%
Iceland0%
India15%
Indonesia10%
Ireland0%
Israel10%
Italy0%
Jamaica10%
Japan0%
Kazakhstan10%
Latvia10%
Lithuania10%
Luxembourg0%
Malta10%
Mexico10%
Morocco10%
Netherlands0%
New Zealand5%
Norway0%
Pakistan0%
Philippines15%
Poland10%
Portugal10%
Romania10%
Russia0%
Slovakia0%
Slovenia0%
South Africa0%
South Korea10%
Spain0%
Sri Lanka10%
Sweden0%
Switzerland0%
Thailand5%
Tunisia15%
Turkey10%
Ukraine10%
United Kingdom0%
Venezuela10%
WHT Rates for Countries with Tax Treaties (Source: IRS 2019)

Countries without a Tax Treaty and their Withholding Tax Rates

The tax rate for countries without a tax treaty is 30%. The bulk of countries eligible for the YPP fall in this category.

Content creators that are residents of these countries are required to submit their tax info to ensure this rate is used.

Otherwise, if no tax info is submitted, Google will use a maximum WHT rate of 24% on their total earnings and not just that earned from U.S. viewers.

The list of countries in this category are as follows:

Algeria Argentina
Aruba Bahrain
Bermuda Bolivia
Bosnia and Herzegovina Brazil
Cayman Islands Chile
Colombia Costa Rica
Croatia Dominican Republic
Ecuador El Salvador
French Guiana French Polynesia
Ghana Guatemala
Guadeloupe Honduras
Hong Kong Iraq
Jordan Kenya
Kuwait Lebanon
Libya Liechtenstein
Macedonia Malaysia
Martinique Mayotte
Montenegro Nepal
Nicaragua Nigeria
Oman Panama
Papua New Guinea Paraguay
Peru Qatar
Reunion Senegal
Serbia Singapore
Saudi Arabia Taiwan
Tanzania Tunisia
Turks and Caicos Islands Uganda
United Arab Emirates Uruguay
Vietnam Yemen
Zimbabwe
Countries without a tax treaty (30% WHT rate)