Ms. Thao contacted the tax authorities for guidance on tax declaration and was told that she only needed to declare and pay taxes on her spa business; income from affiliate marketing had already been taxed at source by the platform, so no further declaration was required.
Ms. Thao asked whether income from affiliate marketing activities on TikTok needs to be declared or settled annually for additional tax purposes. If the platform has already withheld tax at source, does the individual still need to complete any procedures with the tax authorities? If declaration is still required, what are the specific procedures and methods?
Regarding this matter, the Tax Department of Son La province has the following opinion:
Clause 4, Article 11 of Government Decree No. 117/2025/ND-CP dated June 9, 2025, regulating tax management for business activities on e-commerce and digital platforms of households and individuals, stipulates:
Article 11. Responsibilities of households and individuals conducting business on e-commerce platforms
4. Households and individuals whose value-added tax and personal income tax have been deducted, declared, and paid on their behalf by the e-commerce platform management organization as stipulated in this Decree are not required to declare or pay value-added tax and personal income tax for business activities on the e-commerce platform for which taxes have already been deducted and paid on their behalf.
Clause 2, Article 10 of Government Decree No. 68/2026/ND-CP dated March 5, 2026, on tax policy and tax management for business households and individual businesses, stipulates:
Article 10. Tax declaration and payment of value-added tax and personal income tax for business households and individual businesses with annual revenue exceeding 500 million VND.
2. Filing and paying personal income tax returns.
a) Household businesses and individual businesses that choose to pay personal income tax using the tax rate multiplied by (x) taxable revenue shall declare and pay personal income tax quarterly, at the same time as declaring and paying value-added tax;
b) Household businesses and individual businesses subject to personal income tax under the method of taxable income multiplied by the tax rate shall declare and pay provisional personal income tax monthly or quarterly on the same value-added tax return. The amount of provisional personal income tax paid shall be equal to the tax rate multiplied by the taxable revenue of the month or quarter, and the final personal income tax return shall be filed annually. If the amount of provisional personal income tax paid is less than the amount declared provisionally paid, or if the provisional tax paid is less than the amount payable upon final settlement, the household business or individual business shall make the additional payment and shall not be charged late payment penalties. If the amount of provisional personal income tax paid is more than the amount payable upon final settlement, the procedure for handling the overpaid tax shall be carried out in accordance with the provisions of Article 12 of this Decree.
Clause 3 of Article 11 of Decree No. 68/2026/ND-CP stipulates:
Article 11. Tax declaration and tax deduction for business activities on e-commerce platforms and digital platforms by household businesses and individual businesses.
... 3. In the case of a business household or individual business that only conducts business on e-commerce platforms or digital platforms, or conducts business both at a fixed business location and on e-commerce platforms or digital platforms, if the total annual revenue exceeds 3 billion VND or exceeds 500 million VND and they choose to declare personal income tax using the method of taxable income multiplied by (x) tax rate, then the business household or individual business shall consolidate revenue to declare annual personal income tax. The amount of personal income tax already deducted or paid on behalf of the owner of the e-commerce platform or digital platform shall be deducted when determining the amount of personal income tax payable."
Summarize for final settlement if revenue is high and choose the income-based tax calculation method.
Based on the regulations mentioned above, business households that conduct business both at a fixed business location and on e-commerce platforms/digital platforms shall declare as follows:
In cases where the e-commerce platform has the function of deducting, declaring, and paying value-added tax and personal income tax on behalf of the business owner, the business household is not required to declare and pay value-added tax and personal income tax for business activities on the e-commerce platform that have already been deducted and paid on its behalf; the business household shall declare and pay the value-added tax and personal income tax arising at its fixed business location.
In cases where other digital platforms do not have online ordering and payment functions, they are responsible for self-declaring and paying taxes (declaring and paying taxes on the combined revenue from sales at fixed business locations and revenue from sales of goods and services sold on e-commerce platforms without online ordering and payment functions).
In the case of household businesses and individual businesses with total annual revenue exceeding 3 billion VND or annual revenue exceeding 500 million VND and choosing to declare personal income tax using the method of taxable income multiplied by the tax rate, the household business or individual business shall consolidate revenue to declare annual personal income tax. The amount of personal income tax already withheld or paid on behalf of the e-commerce platform or digital platform owner shall be deducted when determining the amount of personal income tax payable.
The Ministry of Finance has issued Circular No. 18/2026/TT-BTC regulating the documentation and procedures for tax management for household businesses and individual businesses. According to Government Decree No. 68/2026/ND-CP, household businesses and individual businesses must submit tax declarations electronically.
Business owners are advised to base their tax declarations and payments on their business operations and revenue, and to review the regulations in the aforementioned documents in accordance with the law.
If you encounter any difficulties during the process, please contact the Tax Department No. 1 of Son La province directly for guidance.
Source: https://vtv.vn/thu-nhap-tu-tiep-thi-lien-ket-co-phai-tu-khai-nop-thue-100260517191626917.htm
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