- Description
- Specifications
The taxation law includes special laws relating to Personal Services Income (PSI). The law operates to prevent individuals from reducing their tax by alienating their Personal Services Income (PSI) to an associated company, partnership, trust or individual or by claiming inappropriate “business” deductions.
If you work as a contractor or consultant you may be affected by the Personal Services Income legislation. Personal Services Income is income earned mainly by your personal efforts and skills.
This paper discussions issues under the following headings:-
- Personal Services Income Overview
- How Does PSI Apply?
- Personal Services Income
- Personal Services Entity
- Personal Service Entity Deduction
- Deductions That A Personal Services Income Recipient Can Make
- Payments To Associates
- Personal Services Business
- Personal Services Business Checklist
- Results Test
- 80% Rule
- Additional Tests
- Unrelated Client Test
- Employment Test
- Business Premises Test
- Application For A Personal Services Business Determination
- Supporting Documents Required For Private Ruling