Affiliate income on e-commerce platforms: the Tax Department's guidance on tax obligations, withholding responsibilities and expense documentation

On 6 October 2026, the Tax Department issued Official Letter No. 7403/CT-TMDT in response to the Vietnam E-commerce and Digital Economy Agency (Ministry of Industry and Trade) and TikTok Shop Vietnam Co., Ltd. regarding tax declaration, withholding and payment for income from affiliate marketing on e-commerce platforms.

The Official Letter clarifies three matters: how to determine the type of income and the tax rate, the responsibilities of platform operators, and the documents enterprises need to record deductible expenses.

1. Determining the tax obligations of individuals

Income under a labor contract. Where an individual receives income under a labor contract or a collective labor agreement signed with the income payer, such income is income from salaries and wages. The income payer withholds, declares and pays personal income tax (PIT) in accordance with regulations.

Income from business activities. Where an individual creates digital content, promotes products or conducts affiliate marketing on e-commerce platforms or digital platforms and receives income from the platform or the brand that is not salary, such income is business income. Business households and business individuals register for tax, declare and pay tax in accordance with Decree No. 68/2026/ND-CP and Decree No. 141/2026/ND-CP.

PIT rate of 5%. Under Clause 12, Article 3 of the Law on E-commerce No. 122/2025/QH15, affiliate marketing services are the advertising of goods and services through access links, referral codes or similar methods linked to an e-commerce platform. Accordingly, the Tax Department determines that this activity is subject to the tax rate for the group "provision of digital information content products and services on entertainment, video games, digital films, digital photos, digital music and digital advertising". The tax rate is 5% under Point dd, Clause 3, Article 7 of the Law on Personal Income Tax No. 109/2025/QH15.

Note: this 5% rate applies where the business individual pays tax under the method of tax rate multiplied (x) by taxable revenue (Clause 3, Article 7 of the Law on PIT No. 109/2025/QH15).

2. Platform operators' responsibility to withhold, declare and pay tax on behalf of sellers

Under Article 43 of Decree No. 252/2026/ND-CP, where TikTok Shop is the operator of an e-commerce platform with an online ordering function and a payment function, it is responsible for withholding tax, and for declaring and paying the withheld tax on behalf of taxpayers. This responsibility applies to the business activities of business households and business individuals on TikTok Shop's platform.

3. Documents for enterprises to claim deductible expenses

Payments for affiliate marketing services are deductible for corporate income tax (CIT) purposes if they fully satisfy the conditions in Article 9 of the Law on CIT No. 67/2025/QH15 and Clause 1, Article 9 of Decree No. 320/2025/ND-CP. Where the service provider is a business household or business individual, the required documents depend on the provider's revenue:

The value added tax (VAT)-liable revenue threshold for business households and business individuals is currently VND 1 billion/year under Clause 1, Article 1 of Decree No. 141/2026/ND-CP.

Obtaining information from the platform to issue invoices. Where services are provided through an e-commerce platform, the seller has the right to request the platform operator to provide buyer information, transaction information, the delivery time and confirmation of order completion status in order to issue e-invoices (Point c, Clause 1, Article 17 of Decree No. 254/2026/ND-CP). The platform operator is responsible for providing this information (Clause 2, Article 19 of Decree No. 254/2026/ND-CP).

💡 Recommendations for enterprises

• Review the list of affiliate marketing partners and classify them into three groups in order to apply the correct tax treatment:
  • Employment relationship (under a labor contract or collective labor agreement): the income is salary and wages; the enterprise withholds, declares and pays PIT upon payment.
  • Service relationship with business individuals or business households: the income is business income; the business individual or household registers for tax, declares and pays tax itself; the enterprise needs an invoice or a list of purchases, depending on the provider's revenue.
  • Relationship through a platform responsible for withholding, declaring and paying tax on behalf of sellers (a platform with an online ordering function and a payment function): the platform operator withholds tax and declares and pays the withheld tax for the business activities of business households and business individuals on the platform.
• For the service relationship group, determine the annual revenue of each household or individual service provider: above VND 1 billion/year, request an invoice; below the VAT-liable revenue threshold, prepare a list of purchases signed by the legal representative or authorized person, together with payment vouchers.
• Make non-cash payments where the value of purchases from each household or individual in a day is VND 5 million or more.
• Prepare and retain an internal file for each partner to demonstrate that the expense is genuine and serves business activities, including: the affiliate marketing contract or agreement; revenue and commission reconciliation reports; payment vouchers; order and transaction data; and evidence of service results (for example, the access links and referral codes used, and the number of completed orders).
• Business households and business individuals should proactively request the platform operator to provide buyer information, transaction information, the delivery time and confirmation of order completion status in order to issue e-invoices in accordance with regulations.

This newsletter is prepared by Crowe Vietnam for general information purposes only and does not constitute advice for any specific case. Enterprises should refer to the original legal instruments and consult professional advisors before applying the above to their particular circumstances.