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You take up Your affiliate revenues as "income from capital"... if You're running paysite(s) You will have end-customer VAT to think about (for EU customers) as well.
Taxation rate for me here in Sweden for "capital income" is 30%, and I'm allowed to declare that as an individual (up to a certain amount per year), if I'd go that route.
Assuming You're incorporated, declare the revenues like I said... and deduct costs as much as possible off of Your gross revenue... take out a low salary...
... and keep the rest (=company profit) in the company and the effects of taxation don't have to be that bad ;)
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