Circular of the Ministry of Finance and the State Administration of Taxation Concerning Pre-Tax Deduction of Insurance Company Commission Expenses
Circular of the Ministry of Finance and the State Administration of Taxation Concerning Pre-Tax Deduction of Insurance Company Commission Expenses
Circular of the Ministry of Finance and the State Administration of Taxation Concerning Pre-Tax Deduction of Insurance Company Commission Expenses
Cai Shui [2003] No. 205
September 12, 2003
To all departments (bureaus) of finance, state and local taxation bureaus of the provinces, autonomous regions, municipalities directly under the Central Government, cities specifically designated in the state plan, and the Bureau of Finance of Sinkiang Production and Construction Corps:
In keeping with developments in the insurance market and in order to facilitate a solution to the problem of inadequate pre-tax reduction of insurance company commission expenses, the scope of such pre-tax reductions are hereby adjusted upon deliberation:
As of January 1, 2003, commission expenses paid by insurance companies in their business operations may be deducted according to the facts within 8% of the total premium income actually obtained by such enterprises, respectively.
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