# Setup Tax Deduction for Affiliate Payouts
**GoAffPro** provides you with the option to set up the tax deduction for affiliate payouts.
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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.
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To set up the tax deduction for affiliate payouts, go to the **Payments** section of the **Settings** tab in the GoAffPro admin panel.
Settings > Payments
Here, go to the Withholding Tax/Retention Tax/TDS/VAT section.
Withholding Tax/Retention Tax/TDS/VAT
Now, select the tax type
Select the tax type
Next, set the tax percentage.
Set the tax percentage
You also have the option to apply the tax deduction only for affiliates with a tax ID and allow them to declare VAT exemption.
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You can check this [guide](https://docs.goaffpro.com/affiliate-payments/settings/setup-tax-deduction-for-affiliate-payouts/tax-id-for-affiliates) on how to allow affiliates to provide their Tax ID.
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Tax deduction options
After this, click on **Submit**. The tax deduction for affiliate payouts will be reflected in the Payouts tab.
