In the audit of Hong Kong companies, the sales commission of Hong Kong companies is a relatively common expense. It is also a relatively common intermediary service expense in international trade. So can such expenses be fully deductible before profits tax in Hong Kong? Is there any difference with mainland tax deduction? Let me share with you today.

In Hong Kong, there is no limit on the deduction of sales commission. Unlike the mainland, the deduction ratio of sales commission is clearly stipulated. Like ordinary enterprises, sales commission is earned according to the contract5%This proportion is deductible, such as insurance industry this proportion is relatively higher. In other words, if the company's sales commission expenses in the current year are100Ten thousand, and the contract revenue is1000Well, the sales commission that an enterprise can normally deduct before tax is1000*5%=50Ten thousand, beyond100-50=50Million is not allowed to deduct before tax, in the income tax settlement of the need to exceed this50Wan carried out tax increase. And in Hong Kong, if that year100As long as the sales commission is in line with industry norms and enterprise expense internal control standards, the amount incurred can be deducted without tax adjustment.

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