Tax questions? You ask lah! #226

Published: Wed, 07/30/25

Updated: Wed, 07/30/25

Tax questions? You ask lah!

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

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?

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.

I am an employee of a company. I also sell the company’s products and earn commission from the company. Should the company furnish a Form CP58 to me and declare the commission earned in the said form?

No, the commission is not required to be declared in Form CP58 because you are not an appointed agent, dealer or distributor of the company, but an employee of the company. The commission shall be declared in the Form EA of the employee as it is an employment income.

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. If you're liking these little tips, you can't imagine how much you'll get out of my course! https://bit.ly/free-webinar-en

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