Some of my clients receives Commission but the company shows that under code 3713, is this correct and what is the implications if any?
Important:
This answer is based on tax law for the year ending 28 February 2020.
Answer:
According to the SARS “Guide for codes applicable to employees tax certificates 2019”, the code 3606 must be used for commission. The SARS “Guide for employers in respect of employees’ tax (2019 tax year)” - Page 27 of 42 – confirms that “commission income must reflect under code 3606”.
Code 3713 is used for other ‘taxable’ allowances. The individual would not be able to make any deductions, otherwise allowable under section 11 (and not limited by section 23(m)).