Tax questions? You ask lah! #180

Published: Wed, 07/17/24

Updated: Wed, 07/17/24

Tax questions? You ask lah!

Your weekly dose of tax knowledge - become tax savvy in just 2 minutes!

I am an employee of an insurance company and receive commissions from the company. Is my employment income subject to the 2% withholding tax provision?

The 2% withholding tax only applies when payments are made by a company to resident individuals who are agents, dealers, and distributors. As you are an employee of the company, the employment income received shall not be subject to the provision of the 2% withholding tax.

I am earning business income and paying tax instalment payments via Form CP500. At the same time, I am also a part-time agent who sells insurance. Is my commission income subject to the 2% withholding tax provision?

Yes, the 2% withholding tax provision is still applicable even though you are subject to tax instalment payments via Form CP500. The insurance company is required to withhold 2% of your commission payment if the threshold is met.

Wishing you plentiful tax savings!

Zen Chow

YYC Tax Guru

P.S. I've received a lot of tax questions, so now I am answering the frequently asked questions and sharing them with you weekly!

P.P.S. Do you want more tax saving tips? Because this is just the tip of the iceberg. https://bit.ly/free-webinar-english

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