Personal income tax on affiliate marketing activities on e-commerce trading platforms

Pursuant to Point c, Clause 2, Article 2 of Circular No. 111/2013/TT-BTC of the Ministry of Finance , remuneration received in the form of brokerage commission is income from salaries and wages of employees, this amount is income subject to personal income tax.

When paying brokerage commissions to individuals who do not sign labor contracts or labor contracts of less than 3 months, with a total income payment of VND 2 million (2,000,000)/time or more, enterprises must deduct tax at a rate of 10% on the income before paying to the individual, according to the instructions at Point i, Clause 1, Article 25 of Circular No. 111/2013/TT-BTC. Enterprises paying income shall issue a deduction certificate for each tax deduction or issue one deduction certificate for multiple tax deductions in a tax period, according to the instructions at Clause 2, Article 25 of Circular No. 111/2013/TT-BTC of the Ministry of Finance.

Individuals with income from salaries and wages (including income from brokerage commissions...) pay personal income tax according to the progressive tax schedule applied to taxable income from business, income from salaries and wages as prescribed in Article 14 of Decree 65/2013/ND-CP, with the lowest tax rate being 5% and the highest being 35% on taxable income.

Individuals with income from salaries and wages must register for tax and are responsible for declaring tax settlement if there is additional tax payable or overpaid tax and request a tax refund or tax offset in the next tax declaration period at the Tax Department where they register their residence.

The Da Nang City Tax Department informs individuals who engage in affiliate marketing activities and earn commission income to know how to implement it. In case of any problems, please contact the Tax Department where you are registered for detailed instructions.

DANANG CITY TAX DEPARTMENT

Source: https://www.danang.gov.vn/web/guest/chinh-quyen/chi-tiet?id=59303&_c=3