Commission employees - Conditions

To deduct employment expenses you paid to earn commission income, you have to meet all of the following conditions:

• Under your contract of employment, you had to pay for your own expenses.
• You were normally required to work away from your employer's place of business.
• You were paid in whole or in part by commissions or similar amounts. These payments were based on the volume of sales made or the contracts negotiated.
• You did not receive a non-taxable allowance for travelling expenses. Generally, an allowance is non-taxable as long as it is a reasonable amount. For example, an allowance for the use of a motor vehicle is usually non-taxable when it is based solely on a reasonable per-kilometre rate.
• You keep a copy of Form T2200, Declaration of Conditions of Employment, which has been completed and signed by your employer.

Forms and publications

• Form T2200, Declaration of Conditions of Employment
• Form T777, Statement of Employment Expenses
• IT522, Vehicle, Travel and Sales Expenses of Employees