Agency export,How exactly is commission calculated?

As an expert with 20 years of international trade service experience, I recommend enterprises focus on the following five mainstream calculation methods:

I. Analysis of Common Agency Commission Calculation Methods

• Percentage of Amount Method (Most Common)
  • Charging 0.5%-5% of the export contract amount (2025 industry standard)
  • Example: For a $1 million order at 3%, commission = 1,000,000 × 3% = $30,000
• Fixed Fee Method
  • Charging a service fee of $500-$5,000 per transaction
  • Suitable for small-value, high-frequency transactions
• Tiered Rate Method
  • 3% for amounts below $1 million, 1.5% for portions exceeding $1 million
  • Preferential policy to encourage large orders
• Cost-Plus Method
  • Adding 15%-30% service fee on top of agency costs (customs clearance/logistics, etc.)
• Hybrid charging method
  • Base service fee + 0.5% of transaction amount
  • Example: $2,000 base fee + 1,000,000 × 0.5% = $7,000

II. What Taxes Are Involved in Commission Income?

According to the latest 2025 policies, agency services should note:

• Value Added Tax6% VAT on commission income (requires special invoice)
• Corporate income tax25% corporate income tax on profits
• Surcharge Taxes12% of VAT (urban construction tax + education surcharge)

Specific recommendations :Transboundary PaymentsCommissions requiretax filing, and single payments exceeding $50,000 require submission of foreign payment filing forms

III. Practical Case Analysis (Latest for 2025)

A garment enterprise exported a $5 million order with agency agreement stipulating:

• Basic service fee: $3,000
• Amount tiered fee rate:
  • $0-$3 million: 2%
  • $3-$5 million: 1.5%

Calculation process:

• $3 million × 2% = $60,000
• $2 million × 1.5% = $30,000
• Total: $3,000 + $60,000 + $30,000 = $93,000

IV. 3 Key Considerations

• Contract clause pitfalls: Specify whether it includes derivative costs such as customs clearance and commodity inspection
• Exchange rate risk: Agree on settlement currency and exchange rate locking mechanism
• Compliance requirements: Foreign exchange receipts and payments must go throughState Administration of Foreign Exchangesupervised account

It is recommended that enterprises request service providers to providesimulated cost calculation sheetbefore signing agency agreements, and have professional accounting firms review tax treatment plans to ensure compliance with the latest regulatory requirements in 2025.