May 4, 2021

Sales Commissions – Tax Basics

Whether you are employed or self-employed, when you receive sales commissions you can reduce your taxes payable by claiming eligible business expenses when filing your personal taxes, including:

If employed, your employer must complete form T2200 ‘Declaration of Conditions of Employment’ before you can claim these expenses on your personal tax return.

If you are self-employed with a registered GST/HST account you will be able to reduce the GST/HST payable by the amount of GST/HST you have paid on eligible business expenses.

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