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Individuals engaged in affiliate marketing who earn income from commissions, advertising and other sources must fulfill their tax liabilities in accordance with regulations. How much tax must these individuals pay?
Income received under a labor contract
According to the guidance provided in Official Dispatch No. 7403/CT-TMDT of the Department of Taxation, where an individual receives income under a labor contract, or collective bargaining agreement entered into with an income-paying organization or individual in accordance with the labor law, such income shall be determined as income from salaries and remunerations.
Organizations and individuals paying income shall withhold, declare, and pay personal income tax in accordance with regulations.
Under the personal income tax law, individuals earning income from salaries and remuneration are entitled to family circumstance-based deductions under the 2025 Law on Personal Income Tax as follows:
Deduction for the taxpayer: VND 15.5 million per month (equivalent to VND 186 million per year).
Deduction for each dependent: VND 6.2 million per month.
After family circumstance-based deductions and other tax-exempt amounts are deducted, tax shall be calculated according to the partially progressive tax tariff prescribed in Article 9 of the 2025 Law on Personal Income Tax:
Tax bracket | Annual taxable income (VND million) | Monthly taxable income (VND million) | Tax rate (%) |
1 | Up to 120 | Up to 10 | 5 |
2 | Over 120 to 360 | Over 10 to 30 | 10 |
3 | Over 360 to 720 | Over 30 to 60 | 20 |
4 | Over 720 to 1,200 | Over 60 to 100 | 30 |
5 | Over 1,200 | Over 100 | 35 |
Income received directly from platforms or brands
In Official Dispatch No. 7403/CT-TMDT, the Department of Taxation clarifies that where an individual engages in digital content creation, product promotion, or affiliate marketing activities on e-commerce platforms or digital platforms and receives income from a platform or brand in connection with business activities, other than salary or wages, such income shall be determined as business income.
Business households and business individuals shall register, declare, and pay taxes in accordance with Decree No. 68/2026/ND-CP and Decree No. 141/2026/ND-CP.
Regarding personal income tax: pursuant to Clause 14, Article 3 of the 2025 Law on E-Commerce, affiliate marketing services in e-commerce mean advertising goods and services through access links, referral codes, or similar methods linked to an e-commerce platform.
Accordingly, affiliate marketing activities on e-commerce platforms shall be subject to the tax rate applicable to the provision of digital information content products and services relating to entertainment, video games, digital films, digital photos, digital music, and digital advertising, for which the personal income tax rate is 5% under Point dd, Clause 3, Article 7 of the Law on Personal Income Tax 2025.
The above provides information on how much tax individuals engaged in affiliate marketing must pay.
