With new paypal tax requirement of 200 transactions or 20000$ per year. How is affiliate program payment handled by paypal? Is it considered as service and counted towards new requirements? if i get 200 payments or reach 20000$ limit from affiliate payments will i get tax document from paypal?
Paypal doesn't send you any tax documents. Take your total income in current accounting year and calculate your Income Tax.
Nope it is now. Starting 2011 they are https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W I'm not sure if this applies only to sellers or also people receiving money from affiliates