Commission-based taxes are levied at the same rate as fixed salaries. The complexity arises from the fact that tax is computed on a different sum each month (depending, of course, on your performance), and this might lead to the application of various tax rates from month to month
In South Africa, who is excused from paying income tax?
In general, you don’t have to pay income tax if you make less than R83,100 per year (or less than R128,650 if you’re over 65, or less than R143,850 if you’re over 75).
Is commission taxed more than salary?
Commissions and salaries are both taxable revenue. Once deductions and exemptions have been taken into account, your taxable income is then taxed based on your filing status and tax rate. Therefore, the quick answer is that commissions and salaries are taxed at the same rate.
What is the tax rate on commission
If you receive it separately from your normal paycheck, it is considered supplemental income and is subject to a 25% tax rate. Social Security and Medicare contributions must still be deducted from these wages by the employer.
