State Administration of Taxation, Circular on Issues Relevant to the Pre-tax Deduction of Commission Expenses Incurred by Insurance Enterprises Related to the Surrendered Insurance Policies

国家税务总局关于保险企业发生与退保业务相关佣金支出税前扣除问题的通知

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Insurance enterprises allowd to obtain pre-tax deductions of commission expenses for surrendered insurance policies.

Issued: August 1 2007
Effective: January 1 2007

Main contents: According to Article 1 of the Circular, where an insurance company has already paid out the commission related to a surrendered insurance policy prior to the occurrence of the surrender, it may deduct the commission before enterprise income tax. Commission that is paid out after the surrender of an insurance policy may not be deducted before enterprise income tax.

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