How to report affiliate income if you don’t run a business?
You don’t need to run a business to earn money through affiliate marketing. However, just like with any other source of income, you’re required to declare and pay taxes on your affiliate earnings once a year. Not sure how to report your affiliate income? Don’t worry — we’ll walk you through everything step by step.
If you’re not operating as a registered business, you can report your affiliate income under general tax rules. In this case, you’ll pay an 18% income tax — but only after exceeding the tax-free threshold, which has been set at PLN 30,000 since 2022.
Alternatively, you can choose a lump-sum tax (ryczałt), which offers a simpler structure:
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8.5% on annual income up to PLN 100,000, and
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12.5% on the portion of income exceeding PLN 100,000.
Both methods are fully legal and transparent ways to handle affiliate income — the right choice depends on how much you earn and how you manage your finances.
1. How to Settle Affiliate Income – GENERAL RULES – 18% Income Tax
When you start working with an affiliate network and begin receiving your first commissions, there’s no need to report this immediately to the Tax Office. However, you are required to file your annual tax return that includes all your income — including what you’ve earned from affiliate marketing.
You only pay tax if your total income exceeds the tax-free threshold. The responsibility for paying this tax lies with you, not with the affiliate network.
Since 2022, the tax-free threshold in Poland has been PLN 30,000.
Example 1 – When you don’t pay any tax
Let’s say in 2022, a publisher earned PLN 30,000 or less through our affiliate network and had no other sources of income (they didn’t work elsewhere or provide any paid services).
By the end of April 2023, they must submit a completed PIT-36 or PIT-37 tax form to the Tax Office. In the “Other income” section, they should report the earnings as “rental of advertising space” — for example, PLN 30,000.00 (or less).
In this case, no income tax is due, because the total income does not exceed the PLN 30,000 tax-free limit.
Example 2 – When you do pay income tax
In another scenario, the publisher earned PLN 40,000.00 from affiliate marketing in 2022 and had no other income sources.
They must submit a PIT-36 or PIT-37 form, reporting “rental of advertising space” income of PLN 40,000.00.
Here, the publisher will pay 18% income tax on the portion of income above the PLN 30,000 tax-free threshold, meaning they’ll be taxed on PLN 10,000.00.
The total income tax owed would therefore be PLN 1,800.00.
2. How to Settle Affiliate Income – LUMP-SUM TAX – 8.5% on Gross Income
Income from affiliate marketing is classified as revenue from renting out your advertising space. That’s why, just like with other types of rental income, you can choose to settle your taxes using a lump-sum system (ryczałt).
When you decide to use the lump-sum taxation method, you must notify your local Tax Office — no later than the 20th day of the month following the month in which you earned your first affiliate income.
After that, you’re required to pay tax every month at a rate of:
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8.5% on income up to PLN 100,000, and
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12.5% on any income exceeding PLN 100,000.
While dealing with tax paperwork isn’t anyone’s favorite task, understanding the rules in advance can help you avoid stress and ensure your annual tax filing goes smoothly.
This article serves as an introductory overview of how affiliate income taxation works. For personalized guidance, you can always consult your local Tax Office — they’ll provide precise information tailored to your individual situation.
If you’d like to learn more about our affiliate tools:
