Personal Services Income (PSI) affects anyone who generates revenue from supplying his or her skills and labour. It’s important you understand if you’re earning PSI, because it can significantly change your tax obligations. Personal Services Business (PSB)  is essentially the same thing as PSI, except that there are no changes to your obligations other than declaring any PSI on your tax return. This means that you are taxed at a business rate instead of an individual tax rate, which can be a difference of as much as 19%. And if you are operating as a business entity that is a company, trust or partnership that primarily derives its income based on the skills or efforts of an individual, then you most likely qualify as a PSI and so are at risk of being taxed accordingly. These two classifications tend to be one of the most misunderstood tax-time pains people grapple with.