Significant tax advantages are possible for commission earners
Remuneration is a very wide term and includes practically all types of income
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 if you earn commission income you are entitled to significantly reduce your tax payable if your commission income is 50% or more of total remuneration received. Remuneration is a very wide term and includes practically all types of income that you can receive from your employer. For example, a medical scheme benefit, most allowances and a bonus would all be included in your remuneration from your employer. All these types of income must, therefore, be added together to determine what percentage commission income is of total remuneration. In the event that your commission income is more than 50% of your total remuneration, you are not restricted to deduct only certain types of expenses (as are individuals with normal salaried income). A commission earner who qualifies for the additional tax benefit can deduct, from their inco...
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