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Law, tax and regulation

Tax on affiliate income

Also called affiliate tax, tax on commission, taxation of affiliate income.

Short answer

In Denmark, affiliate commission is taxable income from the first krone. The profit is taxed as personal income – as a hobby activity without labour market contribution, or as a business with an 8 % labour market contribution (AM-bidrag) and deductions for operating costs.

Definition of Tax on affiliate income.

Commission is paid out without tax being withheld, so in Denmark you must make sure yourself that the income is included in your preliminary income assessment (forskudsopgørelse) and annual tax return (årsopgørelse). Whether the activity is a hobby or a business is decided by a specific assessment of, among other things, profitability and intensity – there is no fixed amount threshold. Other countries have their own rules – this entry describes the Danish ones.

VAT is a separate question with its own threshold: in Denmark, VAT registration is required once VAT-liable turnover exceeds DKK 50,000 within a calendar year. That threshold is about VAT – not about income tax.

How it goes wrong

  • 01

    The VAT threshold read as a tax threshold

    The DKK 50,000 is the threshold for VAT registration – not a tax-free allowance. In Denmark, the tax liability applies from the first krone.

At Affilyflow

Tax on affiliate income in practice

If you are a Danish private individual, Affilyflow reports your payouts to the Danish Tax Agency (eIndkomst), and you will find an annual statement in the dashboard.

Frequently asked questions

How much can I earn from affiliate marketing in Denmark without paying tax?

There is no tax-free amount for affiliate income – the income is taxable from the first krone and must always be declared. The DKK 50,000 threshold that is often mentioned concerns VAT registration – not tax.

Is labour market contribution (AM-bidrag) payable on affiliate income in Denmark?

Yes, if the activity is a business – then 8 % labour market contribution is paid on the profit. No labour market contribution is paid on income from a hobby activity.

Do I need a Danish CVR number to pay tax on affiliate income?

No. Paying the tax does not require a CVR number. It only becomes necessary when you register a business – for example because you must register for VAT once VAT-liable turnover exceeds DKK 50,000 within a calendar year.

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