During the audit in Hong Kong, it was found that many companies would incur commission expenses due to business needs. As for the expenditure of commission, due to the differences in tax policies between Hong Kong and inland areas, the tax policies in this respect are different.

During this period of time, the Neilu area is also doing the annual corporate income tax settlement. The financial staff of the company with commission expenses will see the adjustment of commission in the income tax settlement table. Generally according to income5%.

However, in Hong Kong, the expenditure of commission is to deduct the profit according to the actual amount of input, and pay profits tax. As long as our commission is actually incurred.

However, regarding the expenditure of commission, both inland and Hong Kong pay attention to the principle of actual occurrence. The Hong Kong Tax Bureau is strict in its approach, and every few years it will inquire about the business of Hong Kong companies, especially some large expenditures. Therefore, we in Hong Kong must prepare the relevant payment statement, relevant bills and other data during the audit, so as to prove the authenticity of this matter and respond to the inquiry of the tax bureau.

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