Commission refers to the remuneration given by an operator to a middleman in sales business, the middleman shall be an entity or individual who are entitled to engage in intermedirary services, however, the employees shall be excluded. Commission includes agency fees, referral fees, intermediary fees, recommendation fees and brokenrage service fees.

1.       Features of commission

(1)	Commission should be given to middleman only. Which cannot be neither sides of the transaction, or their agent or the handler.
(2)	The operator shall pay the commission in an explicit manner, both payer and payee shall do book-keeping accordingly.

2.       Deduction ratio for CIT calculation

Enterprise shall not record the handling fee and commission as expenses of rebates, business commissions, or have the amounts deducted from the service agreement or contract directly, the deduction limit shall be calculated at 5% of the recognized revenue according to the service agreement or contract. For insurance business, the deduction limit of handling fee and commission of shall be calculated at 18% of the balance of current year’s total premium income minus surrender value, the excess part is allowed to be  carried forward for deduction in subsequent years.

3.      Evidence of commission payment

(1)	Sales contract or service agreement;
(2)	Commission contract or agreement (no need to provide if the commission has been agreed in the sales contract or service agreement;
(3)	Bank payment slip (cash receipt is acceptable for payment to domestic individuals);
(4)	A statement on the progress of commission payment settlement;
(5)	Statutory receipt issued by the commission payee, such as invoices ;
(6)	Qualification certificate or business license of the payee, identity certificate of individuals, etc.;
(7)	Commision calculation and distribution table, etc.

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