You might notice that some amount in Google AdSense was debited for US Ch.3 Tax Withholding, do you know why? and are you facing "Automatic Payment Pending: bank transfer to bank account" issue in Google AdSense? then this video is for you! In this video I've explained why you are facing "Automatic Payment Pending" during the time of sending money from Google AdSense to your bank account. I've also explained why there is a debit of some amount for "US Ch.3 Tax Withholding" during the time of payment. Watch the video till end for better understanding.
NOTE!
These are the three possible withholding scenarios:
Case 1: IF THE CREATOR DOESN'T SUBMIT TAX INFO:
This means that until Google has your completed tax info, Google will deduct up to 24% of your total earnings worldwide – NOT JUST YOUR US EARNINGS.
EXAMPLE: If the creator earns $1000 out of which $100 are from US then,
Case 2: CREATOR SUBMITS TAX INFO AND CLAIMS A TREATY BENEFIT:
Final tax deduction is $15. This is because India and the US have a tax treaty relationship that reduces the tax rate to 15% OF EARNINGS FROM VIEWERS IN THE US
Case 3: CREATOR SUBMITS TAX INFO BUT IS NOT ELIGIBLE FOR A TAX TREATY:
For creators falling in this category the final tax deduction will be $30 (based on above example). As the tax rate without a tax treaty is 30% OF EARNINGS FROM VIEWERS IN THE US.
KNOW IT FAST
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