# Setup Tax Deduction for Affiliate Payouts

**GoAffPro** provides you with the option to set up the tax deduction for affiliate payouts.&#x20;

{% 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="https://1200686697-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-LdPzLtyP46oY7cyXnkw%2Fuploads%2Fc0LbDarT7Rz7wxITfTSa%2Fimage.png?alt=media&#x26;token=75d7aa2f-d5dc-4059-b662-8db97d72f458" alt=""><figcaption><p>Settings > Payments </p></figcaption></figure>

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

<figure><img src="https://1200686697-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-LdPzLtyP46oY7cyXnkw%2Fuploads%2Fcbo7KZ2d3sHnVWbg0Cc3%2Fimage.png?alt=media&#x26;token=5a956f94-ddf6-48bb-869a-3f827912ec9f" alt=""><figcaption><p>Withholding Tax/Retention Tax/TDS/VAT</p></figcaption></figure>

Now, select the tax type

<figure><img src="https://1200686697-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-LdPzLtyP46oY7cyXnkw%2Fuploads%2Fd9WRR4IM6SdCFxTiFCGh%2FScreenshot%202025-06-02%201751293.png?alt=media&#x26;token=dc94c51d-2349-4276-82d8-b40cd32473ea" alt=""><figcaption><p>Select the tax type</p></figcaption></figure>

Next, set the tax percentage.&#x20;

<figure><img src="https://1200686697-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-LdPzLtyP46oY7cyXnkw%2Fuploads%2FdZqf1riFahQgKG6EOPAT%2FScreenshot%202025-06-02%20175129.png?alt=media&#x26;token=2976ee67-2ec0-4567-8f0c-b7c5a843f32d" 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](setup-tax-deduction-for-affiliate-payouts/tax-id-for-affiliates) on how to allow affiliates to provide their Tax ID.&#x20;
{% endhint %}

<figure><img src="https://1200686697-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-LdPzLtyP46oY7cyXnkw%2Fuploads%2F93G42WBOj6dTZjJTXZ9q%2FScreenshot%202025-06-02%20180226.png?alt=media&#x26;token=9075da76-3fab-4b96-adc0-2af5615beb72" 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="https://1200686697-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-LdPzLtyP46oY7cyXnkw%2Fuploads%2FXXtrbP3bTg4D5iSgmJgS%2FScreenshot%202025-06-02%20175813.png?alt=media&#x26;token=8c048989-10fb-46ed-9ea6-09cb42776f1b" alt=""><figcaption><p>Click on Submit</p></figcaption></figure>

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