Commission agents in South Africa are typically not considered employees but rather independent contractors or self-employed individuals. As such, they are responsible for managing their own tax affairs, including paying their own taxes such as income tax and provisional tax. Commission agents are not subject to employee’s tax (PAYE) as they are not employees in the traditional sense and do not receive a salary or wages from an employer.
It is important for commission agents to keep accurate records of their income, expenses, and any taxes owed to ensure compliance with tax laws and regulations in South Africa. Commission agents may be required to register for tax purposes and submit tax returns to the South African Revenue Service (SARS) based on their commission earnings. It is recommended that commission agents consult with tax professionals or SARS directly to understand their tax obligations and ensure compliance with tax laws.

• If the employee is in possession of a tax directive, the employer MUST deduct employees’ tax according to the instructions on the tax directive and the employees’ tax deducted reflect as PAYE on the IRP5/IT3(a).
• If the employee is in possession of a tax directive, the employer MUST deduct employees’ tax according to the instructions on the tax directive and the employees’ tax deducted reflect as PAYE on the IRP5/IT3(a). GUIDE FOR EMPLOYERS IN RESPECT OF Revision: 0 Page 30 of 41 EMPLOYEES’ TAX (2025 TAX YEAR) – PAYE-GEN-01-G19 Application form IRP5/IT3(a) details Example
• If the employee is not in possession of a tax directive, the employer MUST combine the salary and commission and deduct employees’ tax according to the applicable tax deduction tables and a PAYE calculation must be done at the end of the tax year or tax period. Under no circumstances may 25% or any other percentage for that matter, be deducted from remuneration, unless the tax directive so directs.
• An employee earning commission may only apply for a tax directive where his/her remuneration consists mainly in the form of commission based on the employee’s sales or turnover attributable to him/her.
• Commission income reflect under code 3606 and the salary income under code 3601. (PAYE-GEN-01-G19 PAR 13.8)