# 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 %}


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.goaffpro.com/affiliate-payments/settings/setup-tax-deduction-for-affiliate-payouts.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.