Hi. I earn a salary and commission. Last year my commission was lower than my salary. My consultant has claimed for expenses. Will this be allowed. I entertain clients allot, I use my car for mainly work purposes. My cellphone bill is mostly for work I have a home office. I spend allot of money to get commission. I have 3606 on my irp5
The commission, to qualify as income for which you can deduct expenses against, needs to be more than 50% of the total income earned. Has SARS disallowed the expenses?
Disays: 5 February 2015 at 13:29
No, not as yet. The assessment has gone in but it will be audited.... My commission amount is 41% of my income. My Job requires that I earn commission and a basic - last year was not the best year for commission - but previous years the commission has always been more...
TaxTimsays: 6 February 2015 at 11:34
Unfortunately SARS only allows for the 50% rule to apply on commission and so you won't be able to deduct person expenses. Lets see what SARS comes back with and take it from there.
Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.