Affiliation and Taxes – How to Manage It So the Tax Office Has Nothing to Complain About?
You earn from affiliation and everything is great—until the moment comes when you have to deal with what every creator and affiliate partner eventually has to handle: taxes. You might already know how to operate in affiliate marketing, but when it comes to settling income from affiliations, you start wondering if you’re doing it right. And that’s okay. It’s better to get a grip on the subject calmly than to explain to the tax office that “you didn’t know affiliation was income.”
Affiliation without a company – when can you operate “as a person” and how to settle it to sleep peacefully?
If you’re thinking about how to settle income from affiliations but are not yet ready to incur the costs of running a business, you can operate as an individual and do it completely legally. Affiliation without a business activity is a solution for those starting with smaller amounts, testing various affiliate programs, and wanting to build their income stream without the pressure of social security or additional fees.
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With income from affiliations, you can choose to settle on general terms, where you only pay tax after exceeding the tax-free amount of 30,000 PLN annually and use the 18% income rate, or opt for a flat rate of 8.5% up to 100,000 PLN and 12.5% above that amount, which is often convenient if you have low business costs.
It’s important to keep records of all income from affiliate programs. It’s worth collecting transfer confirmations, recording payment dates, and amounts from affiliate networks. If you choose the flat rate, remember that you must report it to the tax office by the 20th day of the month after receiving your first income. You don’t have to pay social security if you don’t run a business, which is a significant relief for many, especially at the start. This way, you can operate fully legally and peacefully in affiliation, test different strategies, and build income without fearing audits or financial penalties for lack of settlement.
Affiliate programs and taxes. Do you have a business and want to do affiliation? Here’s how to settle every income step by step
If affiliation starts bringing you higher income or you plan to operate more broadly, it’s worth considering running a business. This allows you to deduct income-related costs, such as equipment, advertising, work tools, or subscriptions necessary for content creation and affiliate campaign analysis. Taxes from affiliate marketing in business can be settled according to the tax scale, where the free amount and 12%/32% rates apply, or you can opt for a flat tax of 19%, which is beneficial for higher incomes as it doesn’t have a free amount but offers a constant rate without thresholds.
In business, affiliation is treated as business income, so you must issue invoices for affiliate commissions and keep records of income and expenses, which will help you avoid issues during a tax office audit. You file declarations depending on the form of taxation—PIT-36, PIT-36L, or PIT-28, and in the case of a flat rate, remember the monthly or quarterly settlement deadlines. Acting as an entrepreneur, you can calmly scale your business, invest in promotion, and expand your reach in RefSpace or other channels, building a stable income based on affiliation. This option gives you more flexibility in financial management, especially if affiliation becomes your primary source of income.
Affiliation from abroad, PIT-11, and interest? What you need to know before settling tax
If you use affiliate programs that pay commissions through Polish companies, you often receive a PIT-11, which you include in your annual tax return. This form is convenient because the company deducts a tax advance, making settlement in PIT-36 or PIT-37 easier for you. The situation is different when cooperating with foreign partners because then you receive the full amount of the remuneration and must independently settle the tax in Poland. It’s worth knowing that Poland has signed agreements to avoid double taxation with many countries, but each situation requires checking the details, especially with ongoing cooperation with foreign affiliate networks.
If affiliate payouts are regular and increasing, it’s good to consider registering a business, which will allow you better financial control and legal settlement of costs incurred in connection with affiliate marketing. In case of doubt, it’s worth consulting an accountant or tax advisor, which is especially important if income from affiliation constitutes a significant part of your annual income.
Customer Service & Marketing Specialist at RefSpace, passionate about AI technology development and shopping psychology. She is responsible for customer service, collaboration with Creators and Suppliers, and application development. Her extensive experience as a Makeup Artist allows her to better understand the mechanisms of trust in recommended products and understand customer needs.
