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Tax directives on commission?



What is the position where an employee earns a high salary and pays site and PAYE on this but also earns commission over and above his salary. Can he claim a tax directive on commission or must he estimate his tax liability. This could be difficult as he does not know what commission he will earn.

TaxTim Marc TaxTim Marc said:
13 February 2015 at 8:37

You would need to estimate the commission based on prior years then and apply for a directive from SARS for the tax to be deducted at a specific percentage. If the commission is greater than 50% of total income then expenses related to earning that income will be allowed as a deduction.

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