> For the complete documentation index, see [llms.txt](https://docs.goaffpro.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.goaffpro.com/affiliate-payments/settings/setup-tax-deduction-for-affiliate-payouts.md).

# Setup Tax Deduction for Affiliate Payouts

**GoAffPro** provides you with the option to set up the tax deduction for affiliate payouts. 

{% hint style="info" %}
The Withholding Tax feature allows you to set up a tax deduction for affiliate commission payouts, ensuring that taxes are deducted before payouts are made to affiliates.
{% endhint %}

To set up the tax deduction for affiliate payouts, go to the **Payments** section of the **Settings** tab in the GoAffPro admin panel.

<figure><img src="/files/Ir1XvBC1VpasWDH9Ml9R" alt=""><figcaption><p>Settings > Payments </p></figcaption></figure>

Here, go to the Withholding Tax/Retention Tax/TDS/VAT section.

<figure><img src="/files/wtUTm0hv7SaQRTwEV9Qc" alt=""><figcaption><p>Withholding Tax/Retention Tax/TDS/VAT</p></figcaption></figure>

Now, select the tax type

<figure><img src="/files/v1CcwqARZL6wXFzJ4lNy" alt=""><figcaption><p>Select the tax type</p></figcaption></figure>

Next, set the tax percentage.&#x20;

<figure><img src="/files/nasW3zPOGEOTAW2j23bY" alt=""><figcaption><p>Set the tax percentage</p></figcaption></figure>

You also have the option to apply the tax deduction only for affiliates with a tax ID and allow them to declare VAT exemption.&#x20;

{% hint style="info" %}
You can check this [guide](/affiliate-payments/settings/setup-tax-deduction-for-affiliate-payouts/tax-id-for-affiliates.md) on how to allow affiliates to provide their Tax ID.&#x20;
{% endhint %}

<figure><img src="/files/6offm3Wm43MpdTNNvo3z" alt=""><figcaption><p>Tax deduction options</p></figcaption></figure>

After this, click on **Submit**. The tax deduction for affiliate payouts will be reflected in the Payouts tab.

<figure><img src="/files/1chAQLW3RZ8N4la4vDH7" alt=""><figcaption><p>Click on Submit</p></figcaption></figure>

{% embed url="<https://youtu.be/COkg3hTtuzg>" %}
Setup Tax Deduction for Affiliate Payouts
{% endembed %}