Significant tax advantages are possible for commission earners

If you are a commission earner and meet certain requirements, you are allowed far greater tax benefits than a normal salaried taxpayer.

The general rule is that a taxpayer who earns commission income is entitled to significantly reduce their tax payable if their commission income is 50% or more of total remuneration received.

Remuneration is a very wide term and includes practically all types of income that can be received by an employee from an employer. For example, a medical aid benefit, most allowances, and a bonus would all be included in the taxpayer’s remuneration from an employer. All these types of income must, therefore, be added together to determine what percentage commission income is of total remuneration.

To access the full article, written by Mazars Tax Consultant Daniel Baines, please visit Business Live here