Vietnam tax authorities clarify affiliate marketing obligations

Hanoi Tax Department has provided guidance regarding tax registration requirements for individuals performing affiliate marketing for platforms like Shopee. The clarification follows an inquiry from an individual earning under 2 million VND per month who noted that Shopee has begun deducting 5% VAT and 5% personal income tax (PIT) from commissions.

Authorities stated that determining whether income is classified as wages/salaries or business income depends on the nature of the economic relationship defined in the contract or agreement between the individual and the organization. If the transaction is legally classified as business activity, the individual is required to fulfill tax registration, declaration, and payment obligations in accordance with current government decrees.