Many domestic enterprises and individuals have registered Hong Kong companies overseas, whileHong Kong companyIn the process of operation, there will be commission expenses related to sales. Then, do you need to adjust such commission expenses when calculating profits tax?

First of all, the commission paid by Hong Kong companies can be deducted before profits tax, without tax adjustment. But it should be noted that the commission must have the following points.

First, relevance. The commission must be related to the operation of the Hong Kong Company. For example, someone introduces a cross-border trade to the Hong Kong company as an intermediary, and after the trade is concluded, the Hong Kong company pays the sales commission to the intermediary in accordance with the agreed proportion, then the commission is related to the operation of the Hong Kong company.

Second, rationality. The proportion of commission paid by a Hong Kong company should be reasonable. In the audit of a Hong Kong company, the specific proportion of commission in sales is not clearly stipulated, but it generally depends on the standards of the industry in which the Hong Kong company is located. The proportion of commission paid conforms to the internal standards of the relevant industry without huge deviation, otherwise the tax bureau and auditors will have doubts, which will cause the audit tax risks of the company.

Third, authenticity. The commission must be genuine. In addition to the agreement related to the commission, there should also be relevant transfer vouchers, commission receipts and other evidence materials.

CycloseThe company is committed to providing domestic and foreign customers with corporate audit, tax declaration, registration, annual inspection, tax planning and other services in Hong Kong, Singapore, Dubai and other regions. Efficient, rigorous, intimate service has been favored by many private enterprises, listed companies and large state-owned enterprises.