3 Avoidable Tax Mistakes That Can Leave Affiliate Marketers Penniless - You Need to Understand Them Immediately

The practice of "forgetting" tax obligations when doing affiliate marketing is putting many creators under scrutiny from authorities. In the context of stricter regulations, a proper understanding of the law is essential to avoid huge fines.

Diversified revenue streams: A confusing "maze"

No longer limited to simply linking to earn commissions, income from e-commerce platforms today is a complex "ecosystem." Many affiliate marketers often overlook various revenue streams when compiling their own revenue: Direct revenue: From livestreams, individual orders, and associated service fees. Affiliate commissions: Often broken down into smaller payments through multiple intermediaries (networks, agencies). Booking & sponsorships: Separate advertising contracts not displayed on the platform's dashboard. Platform rewards: Money from views, virtual gifts from fans, or promotional programs within the app.

The lack of a unified management tool leaves many creators vulnerable when tax authorities cross-reference data from banks and payment gateways.

"The 'pass' of Decree 117/2025/ND-CP: The exchange submits the payment on behalf of the entity, but the entity still bears responsibility."

From July 1st, 2025, e-commerce platforms with payment functionality have begun to take responsibility for deducting and paying VAT and personal income tax on behalf of individual businesses at the time of successful transactions.

However, experts warn affiliate marketers against completely relying on the platform for three reasons: Out-of-platform revenue: Income from social media or websites without payment functionality must still be declared by the individual. Information responsibility: Recipients must proactively standardize their tax identification numbers and provide accurate data to the platform. Tax refund mechanism: For seasonal workers with total revenue below the tax threshold, refunds are only possible if documentation is provided and tax payment progress is closely monitored. Importantly, the tax threshold is expected to undergo significant adjustments starting in 2026.

The economic dilemma: Individual or Household Business?

To optimize tax obligations, affiliate marketers need to clearly define their business model. Currently, there are two main tax scenarios in effect: For individuals not registered as businesses: Commissions are considered income from salaries and wages. The tax rate applied follows the progressive tax schedule (7 brackets), ranging from 5% to 35%. For individuals running businesses (household businesses): Commissions are considered service revenue. The total tax payable is only 7% (including 5% VAT and 2% personal income tax) on revenue.

A warning from the authorities.

In the coming period, the Tax Department will intensify a comprehensive review of the use of electronic invoices and declarations for livestreaming and affiliate activities. Fraudulent or delayed declarations will not only lead to tax arrears and administrative penalties but may also result in serious legal troubles.

Don't wait until it's too late to take action.

In the digital age, every flow of money leaves a "trace" on the banking system and platforms. Proactively understanding the law and fulfilling tax obligations not only helps affiliate marketers avoid the risk of back taxes and heavy penalties, but also serves as a "passport" to building a professional and sustainable content creation career. Be a civilized businessperson before becoming a million-view "king."

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