How to deduct commission expenses before corporate income tax? With the continuous development of social economy, more and more companies will be involved in commission expenses. How much do you know about the pre-tax deduction standards for this part of expenses? And there are What are the precautions? Let’s learn about it together~~ 1. Limit deduction 1. General enterprises are based on the "Notice of the Ministry of Finance and the State Administration of Taxation on Pre-tax Deduction Policies for Enterprise Fees and Commission Expenses" (Finance and Taxation [2009] No. 29) It is stipulated that the handling fees and commission expenses incurred by other enterprises related to their business activities shall be recognized according to the service agreements or contracts signed with intermediary service institutions or individuals with legal business qualifications (excluding the parties to the transaction and their employees, agents and representatives, etc.) Calculation limit of 5% of the income amount. 2. According to the "Announcement on the Pre-tax Deduction Policy for Insurance Enterprises' Handling Fees and Commission Expenses" (State Administration of Taxation Announcement No. 72 of 2019), insurance companies shall not exceed the current year's handling fees and commission expenses related to their business activities. 18% (including the principal amount) of the balance of all premium income after deducting surrender charges, etc. is allowed to be deducted when calculating taxable income; the excess is allowed to be carried forward for deduction in subsequent years. 3. According to Article 4 of the "Announcement of the State Administration of Taxation on Certain Tax Treatment Issues on Taxable Income of Enterprises" (State Administration of Taxation Announcement No. 15 of 2012, hereinafter referred to as Announcement No. 15), telecommunications enterprises must , in the process of business expansion (such as entrusted sales of telephone network cards, telephone recharge cards, etc.), if it is necessary to pay handling fees and commissions to brokers and agents, the actual related handling fees and commission expenses incurred shall not exceed the company's current year's income 5% of the total amount is allowed to be deducted before corporate income tax. 4. According to Article 20 of the Notice of the State Administration of Taxation on the Issuance of the "Measures for the Treatment of Corporate Income Tax on Real Estate Development and Operation Businesses" (Guo Shui Fa [2009] No. 31), real estate enterprises entrust overseas institutions to sell developed products, they shall pay the overseas institutions The sales expenses (including commissions or handling fees) shall not exceed 10% of the entrusted sales income and shall be deducted according to the actual situation. 2. Actual deductions According to the provisions of Article 3 of Announcement No. 15, enterprises that engage in agency services and whose main business income is fees and commissions (such as securities, futures, insurance agencies, etc.), they actually incurred in order to obtain such income The operating costs (including handling fees and commission expenses) are allowed to be deducted before corporate income tax. Notes 01 The enterprise should sign an agency agreement or contract with an intermediary service enterprise or individual with legal business qualifications, and pay handling fees and commissions in accordance with relevant national regulations. Except for entrusting personal agents, handling fees and commissions paid by enterprises in cash and other non-transfer methods shall not be deducted before tax. The handling fees and commissions paid by enterprises to relevant securities underwriting institutions for the issuance of equity securities shall not be deducted before tax. 02 Enterprises are not allowed to include handling fees and commission expenses into rebates, business commissions, rebates, entry fees and other expenses. 03 The handling fees and commission expenses that have been included in the enterprise's fixed assets, intangible assets and other related assets shall be deducted in installments through depreciation, amortization, etc., and shall not be deducted directly in the current period. 04 The handling fees and commissions paid by the enterprise shall not directly offset the service agreement or contract amount, and shall be truthfully recorded in the account. 05 Insurance companies should establish and improve the relevant management system for handling fees and commissions, and strengthen the ledger management of carry-over and deduction of handling fees and commissions.