Commission Income

Taxpayers who earns commission income, and who’s commission income represents more than 50% of their total income, are allowed to deduct expenditure and losses actually incurred in the production of income, provided such expenditure and losses are not of a capital nature, in terms of “section 11 (a) of the Income Tax Act.”

Allowable Deductions for Commission earning taxpayers are as follows:

  • Home Office Expenses
  • Entertainment
  • Travelling Expenses
  • Computer Consumables
  • Deemed Private Expenses.

Please follow the link below which will provide more clarity on the requirements for deducting the above expenses: https://showme.co.za/ballito/files/2015/11/11-Nov-2015-Commission-Earners-20152.pdf

NB! Taxpayers should bear in mind that SARS often challenges commission expenses, so it is advisable to keep accurate and complete records. So please retain all documentary proof.