Question 1

Do I really have to pay tax on affiliate commissions?

Accepted Answer

Yes. Commissions from Shopee, TikTok, Lazada, and similar programs are self-employment income. You register with the BIR, file returns, and pay either the 8 percent option or the graduated rates. The platforms also report and withhold, so the income is visible to the BIR.

Question 2

What is the 8% option?

Accepted Answer

A simplified regime for self-employed individuals earning ₱3 million or less a year. You pay 8 percent of your gross receipts above ₱250,000, and that replaces both the regular income tax and the 3 percent percentage tax. No expense receipts needed.

Question 3

When are the graduated rates better?

Accepted Answer

When your documented business expenses are large relative to your income. The graduated table applies to your net income after expenses, so a low profit margin can beat the 8 percent on gross. As a rule of thumb, if expenses are under about half of your commissions, the 8 percent option usually wins.

Question 4

Why does the platform deduct tax from my payouts?

Accepted Answer

Platforms are withholding agents. Since July 2024, Shopee and TikTok Shop deduct the e-marketplace rate of 1 percent on half your commissions, about 0.5 percent of the total, once your yearly earnings through the platform pass ₱500,000. Talent and brand-deal fees instead use the older 10 percent rate, or 5 percent with a sworn declaration that your gross is at or under ₱3 million. Either way it is remitted to the BIR under your name as a prepayment, not an extra tax.

Question 5

How do I get credit for the withheld tax?

Accepted Answer

Ask the platform for BIR Form 2307, the certificate of creditable tax withheld. Attach it when you file your quarterly and annual income tax returns; the withheld amounts are subtracted from the tax you owe. If more was withheld than you owe, the excess can be carried over or refunded.

Question 6

What if I earn more than ₱3 million a year?

Accepted Answer

You lose the 8 percent option, must register for VAT, and charge 12 percent VAT on your services. At that level the computation has more moving parts, and an accountant will earn their fee.

Question 7

Is anything I enter saved or sent anywhere?

Accepted Answer

No. Every calculation runs privately on your device. Nothing you type is stored, tracked, or sent to a server.

Affiliate Tax
Calculator

How affiliate tax works

Questions people ask

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Affiliate TaxCalculator

How affiliate tax works

Questions people ask

The other calculators

Affiliate Tax
Calculator