YouTube income tax for Ukrainian creators: US withholding and Ukrainian declaration

Google withholds US tax on YouTube earnings from US viewers. With the AdSense tax form, a Ukrainian creator pays 10% under the treaty. In Ukraine the same income is taxed at 18% personal income tax plus 5% military levy.

In March 2021 Google announced that as early as June 2021 it would start withholding US tax from payments to YouTube creators outside the US. The rule still applies. This article has been updated using YouTube Help, the IRS treaty table and the Tax Code of Ukraine.

What tax does Google withhold from YouTube earnings?

According to YouTube Help, tax is withheld on earnings from US viewers: ads, YouTube Premium, Super Chat, Super Stickers, Super Thanks and channel memberships. Without tax information, Google may withhold up to 24% of an individual’s total worldwide earnings; for a business outside the US, the rate is 30% of earnings from US viewers. With tax information submitted, the rate on earnings from US viewers ranges from 0 to 30% depending on the country’s tax treaty with the US.

Ukraine and the US have a double taxation treaty. The IRS rate table lists 10% for copyright royalties for Ukraine, under Article 12(2) of the treaty. The reduced rate applies once you claim it on your tax form.

Earnings from viewers in other countries are outside US withholding. YouTube Studio shows the split by country in revenue analytics.

How do you submit tax info in AdSense?

AdSense → Payments → Payments info → Manage settings → Payments profile → United States tax info → Manage tax info. The tool selects the right form from your answers about your status.

Individuals usually complete form W-8BEN, companies complete W-8BEN-E. To get the treaty rate, the form states Ukrainian tax residency and your taxpayer identification number. The name and address must match the payments profile. Once the form is verified, the rate appears in the tax info section.

How much tax do you pay in Ukraine?

• Income from a foreign source is included in total annual taxable income and taxed at 18% (subparagraph 170.11.1 and paragraph 167.1 of the Tax Code).
• Individuals also pay military levy on this income; the current wording of the Code sets it at 5% (subparagraph 1.3, paragraph 16-1, subsection 10, section XX).
• The annual return is due by 1 May of the following year (subparagraph 49.18.4), and the tax is payable by 1 August (paragraph 179.7).
• US tax paid can be credited if you have a certificate from the foreign tax authority stating the tax paid and the tax base, legalised (apostille) unless a treaty provides otherwise (paragraph 13.5, subparagraph 170.11.2). The credit cannot exceed the tax calculated under Ukrainian rules (subparagraph 170.11.4).
• If you do not have the documents on the income and foreign tax paid by the deadline, you must apply to move the filing deadline to 31 December of the following year (subparagraph 170.11.2).

Dollar income is converted to hryvnia at the National Bank of Ukraine rate on the date received. A simple spreadsheet helps: payment date, amount, rate, amount in hryvnia, US tax withheld.

A worked example

A hypothetical example to show the order of steps. Over a year a channel earns 1,000 dollars, of which 400 come from US viewers. With the treaty claim on file, Google withholds 10% of 400 dollars, which is 40.

In Ukraine the full 1,000 dollars, converted to hryvnia, goes into the return: 18% income tax and 5% military levy. With an apostilled US certificate, the 40 dollars withheld reduce the income tax. Without the certificate there is no credit.

What about sole proprietors (FOP)?

Sole proprietors (FOP) follow single tax rules, and whether YouTube income fits depends on their group and registered activities. Tax rules change, so check the current wording of the Code and consult an accountant or the State Tax Service before filing.

Growing the channel

Tax matters once a channel earns. Revenue grows from three things: regular uploads, search optimisation of titles and descriptions, and promotion through Google Ads and social media. Our team handles YouTube video marketing and video production for YouTube. Take tax questions to an accountant.

FAQ

What tax does YouTube withhold from a Ukrainian creator?

Tax on earnings from US viewers. With form W-8BEN and the Ukraine–US treaty claim, the rate is 10%. Without a form, Google may withhold up to 24% of an individual’s total worldwide earnings.

Do I pay tax in Ukraine if the US already withheld 10%?

Yes. The income is declared in Ukraine at 18% income tax and 5% military levy. US tax can be credited with an apostilled certificate from the US tax authority, capped at the tax calculated under Ukrainian rules.

When is the return for YouTube income due?

By 1 May of the following year, with payment by 1 August. If the US documents are missing by then, file an application to move the deadline to 31 December of the following year.

Is income from Ukrainian viewers subject to US tax?

No. According to YouTube Help, US tax applies only to earnings from US viewers. Income from other countries is declared in Ukraine under the general rules.

Where in AdSense do I submit tax info?

Payments → Payments info → Manage settings → Payments profile → United States tax info → Manage tax info. The tool picks the form for you.

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Sources

• YouTube Help: U.S. tax requirements for YouTube earnings
• 9to5Google: YouTube will deduct US taxes (03.2021)
• IRS: Tax Treaty Table 1 (Ukraine, royalties)
• Tax Code of Ukraine (zakon.rada.gov.ua)