Creator & Agencies Withholding Taxes
In compliance with the Law of México, TikTok Shop will withhold value-added tax (IVA) and personal income tax (ISR) from Creators and Agencies located in México based on the tax information provided. The withholding taxes are on Creators' and Agencies' Affiliate activities with Local-to-Local Sellers and Cross Border Sellers.
Value-added tax ("IVA") refers to the Mexican value-added tax amount that TikTok Shop is required to withhold on Creators' and Agencies' commissions, which are earned from Affiliate activities with Local-to-Local Sellers. TikTok Shop will then remit this amount to the Mexican tax authority. The amount of IVA withheld is based on Creators and Agencies' RFC number, registration type and validation status. If IVA is remitted to the Mexican tax authority, you will receive a withholding tax certificate in your account.
Personal income tax ("ISR") refers to the Mexican income tax amount that TikTok Shop is required to withhold on individual Creators' and Agencies' commissions, which are earned from Affiliate activities with Local-to-Local Sellers and Cross Border Sellers. TikTok Shop will then remit this amount to the Mexican tax authority. The amount of ISR withheld is based on Creators and Agencies' RFC number, registration type and validation status. If ISR is remitted to the Mexican tax authority, you will receive a withholding tax certificate in your account.
Individual Creators are subject to only ISR withholding for commission from affiliate activities with Cross Border Sellers.
The taxable base for this tax is the commission minus VAT.
Example: Selling price of goods (inclusive of VAT) = 100 [A] Merchant's discount = 10 [B] Tiktok's discount = 5 [C] TikTok's commission = 10 [D] TAP' commission =8 [E] Creator's commission= 5 [F] CAP's commission = 2 [G] Cedular Tax Computation = 2.5% x Creator's gross income (VAT exclusive) = 2.5% x ((F+G)/1.16) = 2.5% x (7/1.16) = 0.15
Agencies are subject to only ISR withholding for commission from affiliate activities with Cross Border Sellers.
*Note: Agencies will receive their total commission on a net-of-creator-tax basis.
Clicking on the drop-down menu of the commission earned will display details of the two taxes.
On a monthly basis, creators will be provided with their withholding tax certificates in the TikTok App > E-commerce center for Creator > Toolkit > Earnings, under "Tax Documents".
When an RFC ID is not provided to TikTok Shop, the Mexican Government requires TikTok Shop to apply and remit the maximum withholding rate for non-registered sellers. This may lead to higher withholding tax rate according to the percentages stipulated by law. In such cases, the withholding tax certificate may not be issued to you.
Note: TikTok can not advise you on tax matters. For further questions on tax issues, please consult your tax advisor, Tax Authority help center services, or visit the Mexican Tax Authority website.
What is Value-Added Tax and Personal Income Tax?
Within the scope of this article, Value-Added Tax and Personal Income Tax refer to the following.Value-added tax ("IVA") refers to the Mexican value-added tax amount that TikTok Shop is required to withhold on Creators' and Agencies' commissions, which are earned from Affiliate activities with Local-to-Local Sellers. TikTok Shop will then remit this amount to the Mexican tax authority. The amount of IVA withheld is based on Creators and Agencies' RFC number, registration type and validation status. If IVA is remitted to the Mexican tax authority, you will receive a withholding tax certificate in your account.
Personal income tax ("ISR") refers to the Mexican income tax amount that TikTok Shop is required to withhold on individual Creators' and Agencies' commissions, which are earned from Affiliate activities with Local-to-Local Sellers and Cross Border Sellers. TikTok Shop will then remit this amount to the Mexican tax authority. The amount of ISR withheld is based on Creators and Agencies' RFC number, registration type and validation status. If ISR is remitted to the Mexican tax authority, you will receive a withholding tax certificate in your account.
How much IVA and ISR are Withheld on TikTok Shop?
Overview
Individual Creators
Individual Creators are subject to IVA and ISR withholding for commissions from affiliate activities with Mexican Local-to-Local Sellers.Individual Creators are subject to only ISR withholding for commission from affiliate activities with Cross Border Sellers.
Individual Creators with a valid RFC
- IVA = (Gross creator affiliate commission / (1 + IVA rate) * IVA rate) * 50%
- In which, Gross creator affiliate commission / (1 + IVA rate) = Creator IVA-exclusive commission.
- ISR = Creator IVA-exclusive commission * 2.5%
Individual Creators with an invalid RFC
- IVA = Gross creator affiliate commission / (1+IVA rate) * IVA rate
- In which, Gross creator affiliate commission / (1 + IVA rate) = Creator IVA-exclusive commission.
- ISR = Creator IVA-exclusive commission * 20%
Individual Creators in Guanajuato
All individual creators from Guanajuato, starting April 1, 2026, a 2.5% withholding will apply to all commissions earned on TikTok Shop.The taxable base for this tax is the commission minus VAT.
Example: Selling price of goods (inclusive of VAT) = 100 [A] Merchant's discount = 10 [B] Tiktok's discount = 5 [C] TikTok's commission = 10 [D] TAP' commission =8 [E] Creator's commission= 5 [F] CAP's commission = 2 [G] Cedular Tax Computation = 2.5% x Creator's gross income (VAT exclusive) = 2.5% x ((F+G)/1.16) = 2.5% x (7/1.16) = 0.15
Agencies
Agencies are subject to IVA and ISR withholding for commissions from affiliate activities with Mexican Local-to-Local Sellers.Agencies are subject to only ISR withholding for commission from affiliate activities with Cross Border Sellers.
*Note: Agencies will receive their total commission on a net-of-creator-tax basis.
Agencies with a valid RFC
- IVA = (Gross agency affiliate commission / (1 + IVA rate) * IVA rate) * 50%
- In which, Gross agency affiliate commission / (1 + IVA rate) = Creator IVA-exclusive commission.
- ISR = Creator IVA-exclusive commission * 2.5%
Agencies with an invalid RFC
- Gross Agency affiliate commission = Agreed commission rate * Net creator affiliate commission
- IVA = Gross agency affiliate commission / (1+IVA rate) * IVA rate
- In which, Gross agency affiliate commission / (1 + IVA rate) = IVA-exclusive agency affiliate commission.
- ISR = (Gross agency affiliate commission - VAT) * 20%
Where can Creators find Details of Withheld Taxes?
Creators may find details of their withheld taxes within a period of time in their TikTok profile on the TikTok App > E-commerce center for Creator > Affiliate orders.On a monthly basis, creators will be provided with their withholding tax certificates in the TikTok App > E-commerce center for Creator > Toolkit > Earnings, under "Tax Documents".
FAQ
- What will happen to the withheld tax amounts?
- Which group of Creators are subject to withholding taxes?
- Do I need to provide my RFC information to TikTok Shop?
When an RFC ID is not provided to TikTok Shop, the Mexican Government requires TikTok Shop to apply and remit the maximum withholding rate for non-registered sellers. This may lead to higher withholding tax rate according to the percentages stipulated by law. In such cases, the withholding tax certificate may not be issued to you.
- What happens if I provide an invalid RFC ID to TikTok Shop?
Note: TikTok can not advise you on tax matters. For further questions on tax issues, please consult your tax advisor, Tax Authority help center services, or visit the Mexican Tax Authority website.