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How much tax do I pay as a consultant and how do I go about doing it?

Posted 31 May 2013

I am a salaried employee (R8000 per month) and I earn a commission as well. (Amount varies every month). I also earn a consultant fee (R2000 per month and this will increase to R7000 per month at the end of June). My payslip does not reflect the commissions earned. The consultant fee is received from a completely different entity. How must I go about paying tax on all these amounts and how much will I end up paying? (I am currently taxed on the R8000 per month only).

TaxTim TaxTim says:
3 June 2013 at 10:12

Why does your payslip not show the commission and when you get paid do they pay you the full amount or do they take off some tax?

Rollo says:
3 June 2013 at 10:53

Im actually not sure why it does not show and I get the full amount.

TaxTim TaxTim says:
3 June 2013 at 11:26

Your employer should be declaring these payments to you and deducting PAYE each month for this. Please ask your employer to do this and it will make your tax life much easier.

When you complete your ITR12 the income tax return you will include under "local business income" all the extra income you earned from commission.

The extra consultant fee - do you receive an IRP5 from this company?

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