According to the "Notice of the State Administration of Taxation on the Exemption of Personal Income Tax on Commission Income obtained by Insurance Salespersons": The commission of insurance salespersons consists of business development costs and labor remuneration.

According to the provisions of the tax law, no personal income tax is levied on the business development costs included in the commission; for the labor remuneration part, after deducting the actual business tax and surcharges paid, personal income tax is calculated and levied in accordance with the relevant provisions of the tax law.

Based on the current actual situation of insurance salesmen’s business development, the proportion of business development costs in commissions is tentatively set at 40%.

For example: Zhang, an insurance salesperson from an insurance company in a certain city, has a monthly commission income of 51,500.00 yuan. Calculate the various taxes and fees Zhang should pay this month: 1. Calculate tax-excluding income = 51,500.00÷(1+3%) = 50,000.00 (

Yuan) Value-added tax payable = 50000.00 × 3% = 1500.00 (yuan) 2. Calculate the local taxes payable and additional urban construction tax payable = 1500.00 × 7% = 105.00 (yuan) Since Zhang’s commission income this month does not exceed 10

Ten thousand yuan, it is exempted from education surcharge, local education surcharge and local water conservancy construction fund.

3. Calculate exhibition costs. Exhibition costs = (excluding tax commission income - local taxes and surcharges)

Commission income including tax - local taxes and surcharges - business development costs) × 20% = (50000.00-105.00) × 20% = 5987.40 (yuan) 5. Calculate taxable income Taxable income = (commission income exclusive of tax -

Local tax surcharge) × (1-40%) - statutory deduction fee = (50000.00-105.00) × (1-40%) - 5987.40 = 23949.60 (yuan) 6. Calculate the amount of income tax payable by Zhang for this month as an individual

Income tax = taxable income × applicable tax rate - quick calculation deduction = 23949.60 × 30% - 2000.00 = 5184.88 (yuan).

Extended information: On April 24, 2015, the 14th meeting of the Standing Committee of the National People's Congress revised some provisions of the Insurance Law of the People's Republic of China and canceled the insurance sales (including insurance agents) and insurance brokerage businesses.

Personnel qualification review and approval matters.

However, in order to supervise the practice of insurance salesmen, the "Notice of the China Insurance Regulatory Commission on Issues Concerning the Management of Insurance Intermediary Practitioners" (CIRC [2015] No. 139) stipulates that before insurance intermediary practitioners practice, their affiliated companies shall provide

The insurance intermediary supervision information system of the China Insurance Regulatory Commission conducts practice registration, and the qualification certificate is not a necessary condition for practice registration management.

Article 6 of Announcement No. 45 further clarifies that the term "individual insurance agent" as mentioned in this announcement refers to a natural person who handles insurance business on behalf of an insurance company within the scope of authorization of the insurance company, excluding individual industrial and commercial households.

Therefore, the calculation of personal income tax on insurance salesperson commissions by deducting business development costs is only applicable to natural persons who are entrusted by insurance companies to handle insurance business within the scope of authorization of insurance companies and are registered in the insurance intermediary supervision information system of the China Insurance Regulatory Commission. In addition,

Insurance marketing commissions obtained by other natural persons shall not be deducted from business development costs when calculating personal income tax.