In recent years, an increasing number of sole proprietors have been earning affiliate income, i.e., commissions for recommending products or services via special links. While this type of income is often irregular or comes from foreign companies, it's important to remember that, under tax law, it constitutes regular business income.
How to tax affiliate income?
Affiliate income is subject to the same taxation rules as other business income. This means that entrepreneurs can choose one of three tax options:
- tax scale,
- flat tax,
- lump sum tax on recorded income – in some cases it is possible to apply a rate 8,5 %, which is worth securing in advance from a legal and tax perspective.
Choosing the right form of taxation should be carefully considered and tailored to the individual situation of the entrepreneur. In practice, factors such as the amount of revenue generated, the type of cooperation with affiliate companies (Polish or foreign), and other sources of income are important.
It is worth ensuring correct settlement
Properly accounting for affiliate income is not only a tax obligation but also a way to avoid unnecessary tax problems in the future. Therefore, it's worth ensuring that the method of recording and taxing income complies with current regulations and interpretations by tax authorities.
Summary
Affiliation is an increasingly popular way to earn money online, but from a tax perspective, it's no different from other forms of business. Every entrepreneur who receives commissions from affiliate links—regardless of whether they're from a Polish or foreign company—should tax them accordingly.
Don't know how to calculate your affiliate income?
Contact our office – we will help you choose the right form of taxation, prepare the necessary settlements, and ensure that everything is done in accordance with the regulations.
