YouTube Terms of Service changes: Right to income, royalties, and withholding taxes

The service update will take effect from June 1, 2021 (REUTERS / Dado Ruvic)

YouTube will update its terms of service. This is a similar amendment to the one that was made for US residents in November 2020 and will take effect on June 1 for users from the rest of the world. “These changes should not significantly change how you access the YouTube service or how you use it,” the company highlights.

The most important changes are as follows:

Limitations on facial recognition: The terms of use have already established that it is not possible to collect any personally identifiable information without their permission. Although this regulation always applies, what is new is that it will now be explicitly mentioned in the Terms of Use.

YouTube Right to Monetize: It should be noted that the platform has the right to monetize all content on the site and ads may be shown on videos from channels that are not part of the YouTube Partner Program.

So far, the platform has included ads in content created by users who were part of the aforementioned program, which can be accessed if certain requirements are met such as having more than 4000 hours of video playback in the past 12 months, and more than 1000 subscribers in A channel, an associated AdSense account, and of course they reside in a country where this partner program is available.

YouTube shows ads on content in these types of channels and gives a percentage of the revenue that their creators earn. Under the new service agreement, YouTube now clarifies that it can also display ads in videos of users who are not part of the affiliate program and will be paid for it, although in this case, users who create that content do not receive revenue for not being a part. From the aforementioned monetization program.

File Image: YouTube Logo at the YouTube Center in Los Angeles in Playa del Rey, Los Angeles, California, USA October 21, 2015. / File Image
File Image: YouTube Logo at the YouTube Center in Los Angeles in Playa del Rey, Los Angeles, California, USA October 21, 2015. / File Image

Royalty payments and tax withholdingFor creators who can earn income payments from YouTube, these payments will be considered revenue from a US tax point of view, and Google will withhold taxes from these payments as required by law.

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“The new terms apply on June 1, 2021 for all users outside the US. By continuing to use YouTube after this date, you agree to the new terms. If you allow a minor in your care to use YouTube Kids, remember that when you accept the new terms, you are You do this also on behalf of the minor concerned, “it is marked in the statement issued by the company and that all users of the service have started receiving it in the past days.

The company has also published a series of details related to this amendment and highlighted, on the one hand, that the aim of this update is to clarify the restrictions related to the collection of facial recognition data, as well as to be “more transparent about the rights that we have regarding the publication of advertisements in different areas of the platform.” .

They also highlighted that the way user information is handled has not changed and that this update has nothing to do with the European Union Copyright Directive or the GDPR.

Additionally, the company said that the included changes will not affect monetization settings for the YouTube Partner Program. He explained, “Partners who reside outside the United States must submit their full tax information to AdSense as soon as possible to determine whether any US withholding applies to their payments. Google will begin withholding taxes on payments from the July 2021 payment (which covers it).” June earnings) if the tax deductions are applied.

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Freddie Dawson

"Beer specialist. Award-winning tv enthusiast. Bacon ninja. Hipster-friendly web advocate. Total social media junkie. Gamer. Amateur writer. Creator."

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