Malaysian YouTubers May Soon Be Taxed 30% by US Law

Malaysian YouTubers May Soon Be Taxed 30% by US Law
Mar 17, 2021
10:34 am

Over the years, many have been turning to content creation as some think that it’s a lucrative income. Some take it to the next level and some just do it for the fun of it and somehow gain internet fame.


As of later this year (possibly in June), Malaysian Youtubers will now be subjected to paying a 30% tax. Well, only for those who have more than 1,000 subscribers as income is generated from ads.


According to a repot by The Star, YouTube Malaysia is under the YouTube partner programme who are required to pay tax to the United States. According to the US tax law, Google (parent company of YouTube) is required to withhold taxes when non-US creators earn income from viewers in the US.

A YouTube spokesperson had given a statement to LifestyleTech, “We are asking creators to submit relevant tax information to determine whether any US withholding taxes apply and where applicable, we will withhold US taxes from creators’ earnings beginning later this year.”

In the Google support page, it has stated that up to 24% of their total earnings worldwide can be deducted. This deduction is applicable to not just income earned by US viewers as well and content creators must submit their tax info by May 31.

However, to those who submit the “tax treaty benefit”, they will only be charged up to 15% of earnings based off how many viewers they received from the US.


For reference, Malaysia does not have any tax treaty with the US after looking through information on the US Inland Revenue Service (IRS). Due to that, Malaysian content creators are likely subjected to 30% deduction from US Viewers as that is the given rate for countries without a tax treaty.

So, how do content creators measure this?

Cartoon Thinking GIF by SpongeBob SquarePants


To submit the information, content creators are required to log into their AdSense account, select Payment and then Manage Settings. Then they will have to scroll to their payment profile and click edit next to “United States Tax”.

From there, the amount of deduction can be estimated via the YouTube Analytics by applying a geography filter to the US. Once all information has been submitted, they’ll be able to see their tax withholding rates which can be seen via the AdSense account.

As YouTube is a digital business, it is taxable under the broadcasting and media category of the Inland Revenue Board (LHDN).

Man, I wonder how much this will impact the local YouTubers or those who do YouTube for fun. Are you one of those affected? Let us know your thoughts in the comments.



Credits to The Star for the initial coverage.

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