General Department of Taxation requests propaganda and guidance on affiliate marketing tax

05/30/2024 16:33 Nhat Linh Print article

ANTD.VN - The General Department of Taxation requires Tax Departments to appropriately disseminate and guide policies and laws on personal income tax for affiliate marketing activities to raise taxpayers' awareness of tax compliance.

The General Department of Taxation has just issued an official dispatch requesting the Tax Departments of provinces and centrally-run cities and the Department of Propaganda and Taxpayer Support to step up propaganda on personal income tax for affiliate marketing activities on e-commerce trading floors.

Accordingly, the General Department of Taxation said that recently, this agency has grasped some press information reflecting on personal income tax for individuals participating in affiliate marketing activities on e-commerce trading floors receiving commissions from online promotion of products or services of suppliers through an affiliate marketing platform.

In order for organizations and individuals participating in affiliate marketing activities on e-commerce trading floors to grasp and understand the regulations on tax policies and laws, the General Department of Taxation requests the Tax Departments and the Department of Propaganda and Taxpayer Support to implement appropriate propaganda measures, guide personal income tax policies and laws for affiliate marketing activities and other business activities on e-commerce trading floors to raise taxpayers' awareness of compliance with tax laws.

In addition, the General Department of Taxation requests tax departments to direct functional departments and tax branches to regularly and proactively grasp difficulties and problems arising in terms of legal policies and tax obligations in the production and business activities of taxpayers in order to promptly resolve and support taxpayers in implementing tax legal policies and tax obligations in accordance with regulations.

Affiliate marketing is a form of online brokerage in which businesses pay commissions to partners (who can be individuals or organizations) when they refer customers to buy products through links on the Internet platform.

Currently, e-commerce platforms use this channel as a partner in business and commission payments.

However, recently, many Affiliates were shocked when the tax authorities imposed a progressive tax rate of up to 35% on the total commission received, instead of the previous provisional tax rate of 10%. This has led to many people owing up to hundreds of millions of dong in taxes.

The incident arose from the fact that this commission was paid by Shopee to partners as wages and salaries, so it was subject to progressive tax.

Speaking to reporters, a representative of the General Department of Taxation said that, in principle, taxes on affiliate marketing activities must be collected according to the nature of the event and based on the contract signed between the e-commerce platform and the partner.

“The policy must be collected as it is. That means we must base on the contract between the two parties to determine the correct taxpayer, whether it is an individual receiving wages or salaries, or an individual doing business. This has been clearly stipulated in the Law, it is not something the tax authority has just thought of,” said a representative of the General Department of Taxation.

On the other hand, if taxpayers report that there are shortcomings in personal income tax policy in this matter, the tax authority will review and assess the impact to amend the policy if necessary.

This person also said that according to information from the Tax Department, recently, many individuals doing affiliate marketing have paid taxes according to regulations.

Source: https://www.anninhthudo.vn/tong-cuc-thue-yeu-cau-tuyen-truyen-huong-dan-ve-thue-tiep-thi-lien-ket-post578030.antd