Kenyan Youtubers hit with taxation, Google users to pay US taxes and digital taxes for KRA

 

YouTubers globally will start paying taxes to the US government from June 2021, as Google announced.


In an alert sent to YouTubers across the world, Google told creators that it will be deducting US tax from payments outside the US.


"We're reaching out because Google will be required to deduct US taxes from payments outside of the US later this year. Over the next few weeks, we'll be asking you to submit your tax info in AdSense," YouTube said Wednesday.


YouTube said content creators who fail to submit their tax data by May 31 will be fined up to 24 per cent of their total earnings.

Google will subtract a 15 Percent tax cut from the income creators earn from views in the US.

In Kenya, Content creators are also expected to file a digital tax of 1.5 Percent of the monthly turnover.

KRA will crackdown social media influencers and other digital media activities that attract customers and obtain a commission.


Commenting on the tax, Kenya's top YouTuber Henry Desagu said, he expects revenues to go down, but he will have to wait and see how much of his earnings will go to the tax.