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Q: I am an employee of a company. I also sell the company’s products and earn commission from the company. Is the commission earned subject to the 2% withholding tax?
A: No, the commission earned is not subject to withholding tax because you are not an appointed agent, dealer or distributor of the company, but an employee of the company. However, the commission will be subject to Monthly Tax Deduction (MTD) as it is an employment income.
Wishing you plentiful tax savings!
Zen Chow
YYC Tax Guru