Vietnam tax authorities clarify rates for TikTok affiliate marketers

Tax authorities in Ho Chi Minh City have provided guidance regarding tax obligations for affiliate marketers operating on platforms like TikTok. For business households receiving commission through affiliate marketing, the income is classified as service or agency commission, which is subject to a 2% personal income tax rate.

In contrast, revenue generated from livestreaming to promote products is categorized as providing digital content and advertising services. This specific activity is subject to a higher personal income tax rate of 5%. The guidance emphasizes that when platforms do not withhold tax before payment, the business household is responsible for self-declaring and paying the required taxes based on their revenue.