I earn a monthly commission, my "employer" requests me to invoice them for the commission and I then get paid the full commission earned. From the Commission I earn I have to pay 2 labourers to help deliver the stock I sell as well as supply the vehicles and fuel. I also supply all office equipment, telephone and stationary, these expenses are all calculated into my "commission". How do I go about paying tax as the total commission earned is not what I actually earn? I know the "employer" does not pay any tax for me as I am requested to invoice them monthly before I get paid with no deductions.
You would include all your business related expenses on the your ITR12 and have all your income and expenses showed under the "local business income" section of your return where you would show the commissions received and the expenses incurred.
Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.