Does an affiliate have to pay capital gains tax if they make a sale?

[Plankton5165]

Using paid traffic? Using free traffic?

 

[Profit Monkey]

What affiliate has to pay is tax on any amount they earn, at least that's how majority of countries operate. Well, except if you're working for that company directly and they're paying your tax.

 

[Graybeard]

Capital gains tax and Income tax are not the same thing (US Tax Code)
Simplified: Capital gain is the gain (profit) from buying and selling an asset (property)
Buying and selling something in the course of ordinary business --e.g.; inventory or contract hourly time billed or any other contract (including employment) for some compensation is ordinary income and taxed as income.

• wages or commission is taxable income
• payment by a affiliate contract agreement is income
• taxable income is (income) - (less allowed expenses) or gross income

 

[thelegend]

Well this question its dificult because it depends on what country you live and each country has his laws .Its better to go to an accountant and ask him or someone from taxes who know abot it

 

[Plankton5165]

I'm from the United States.

 

[Graybeard]

Well this question its dificult because it depends on what country you live and each country has his laws .Its better to go to an accountant and ask him or someone from taxes who know abot it

EU for example has some VAT laws that make contract labor taxable as VAT --not income tax nor capital gains tax
Who is the agent and who is the actual seller of the goods with respect to the VAT tax on digital 'goods' or labor?

 

[Honeybadger]

Well this question its dificult because it depends on what country you live and each country has his laws .Its better to go to an accountant and ask him or someone from taxes who know abot it

Thats agreed, its always better to pay up for pro advice

 

[Graybeard]

https://www.irs.gov/pub/irs-pdf/i1040sc.pdf
this is 'official' info -- not accounting advice