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──Feb 05 , 2023Can the commission be deducted before tax in Hong Kong?

whetherHong Kong companyIn other countries or regions, if companies need to carry out market expansion, market research, technical support, after-sales service and so on, there are often commission expenses. Can the commission expenses be deducted before tax? The answer is yes, but the following conditions must be met:

First, the commission must be related to the operation of the company. If it is not related to the company's operation, it cannot be deducted before tax.

Second, the commission should be paid in a reasonable proportion. According to the industry standard of Hong Kong company: commission ratio within the industry standard will be accepted.

Third, it has to happen. Auditors will require clients to provide authentic information, including but not limited to commission agreements, transfer vouchers, receipts and other evidence.

Can the commission be deducted before tax in Hong Kong?

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.

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