Personal Services Income: When Do the PSI Rules Apply?

Learn to identify when an individual or their Personal Services Entity (PSE) derives income that will be subject to the PSI rules, or whether they stay out of ‘PSI jail’ if they are carrying on a Personal Services Business (PSB)!

In this session, we cover:

• Introduction to Personal Services Income (PSI)

  • Purpose of PSI rules

  • Consequences when rules are not met

• What is PSI?

  • How do we determine if income is PSI?

    • Multiple individuals providing services via Personal Services Entity (PSE)

  • Exclusions

    • Sale of goods

    • Sale or license of copyright

    • Use of assets significantly generating income

• Conditions to be a Personal Services Business (PSB)

  • Results test

  • 80% test

  • Unrelated clients test

  • Employment test

  • Business premises test

• Obtaining a PSB determination

  • When is PSB determination granted?

  • When is PSB determination not granted?

Date recorded: 23 May 2025