State Administration of Taxation, Circular on Issues Relevant to the Pre-tax Deduction of Commission Expenses Incurred by Insurance Enterprises Related to the Surrendered Insurance Policies
国家税务总局关于保险企业发生与退保业务相关佣金支出税前扣除问题的通知
September 02, 2007 | BY
clpstaff &clp articles &Insurance enterprises allowd to obtain pre-tax deductions of commission expenses for surrendered insurance policies.
Issued: August 1 2007
Effective: January 1 2007
Main contents: According to Article 1 of the Circular, where an insurance company has already paid out the commission related to a surrendered insurance policy prior to the occurrence of the surrender, it may deduct the commission before enterprise income tax. Commission that is paid out after the surrender of an insurance policy may not be deducted before enterprise income tax.
The portion of commission expenses in excess of the refund for the surrendered insurance policy may not be deducted before enterprise income tax if such case occurs before the Circular comes into effect (Article 2).
Repealed Legislation: The second paragraph of Article 2 of the State Administration of Taxation, Circular on Business Issues Relevant to the Income Tax of Financial and Insurance Enterprises, which states that the portion of commission expenses related to the surrendered insurance policy may not be deducted before tax.
Related Legislation: Circular on Business Issues Relevant to the Income Tax of Financial and Insurance Enterprises, 2002
clp reference:3230/07.08.01promulgated:2007-08-01effective:2007-01-01This premium content is reserved for
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