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Join Date: Oct 2011
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| | Personal Services Income
I'm looking for some clarification on this PSI issue.
From my understanding, If your 'personal skills/labour' create the income, it will be charged at a marginal tax rate, the same as a sole-trader, for example: if i was working for myself through a company structure, and contracting to an employer as a 'hourly paid' person, say $50/hr for 40 hours a week.
Since it is my 'skill' (supervisor) that would be generating the income, is that PSI? As opposed to something like selling an iPhone app, the app would be generating the income which would be classed as the 30% tax rate?
Also, if i earned say $200k in the company structure through the year, and employed my wife to maintain records etc, would the gross income of the company be taxed at PSI as it would be my 'personal service' that would generate the income?
Just curios, thanks!