Taxation effect

Commission earned is part of your taxable income.

The Income Tax Act allows for expenditure incurred in the production of income to be deducted from your income.  This includes :

• wear and tear on your vehicles.  Please bear in mind that it is critical to maintain a proper logbook
• petrol;
• communication costs; and
• home office expenses.

Tax directives

If your earnings are commission-based we can apply for a tax directive on your behalf

This means that your employer can now deduct a fixed percentage of your salary every month as PAYE.

The risk remains that, if your tax directive percentage is not high enough, you will be required to pay the remainder of your tax liability at the end of each year.

SOURCES :

Cronje & Cronje
Business Partners