Agency export,What taxes apply to commissions?

According to 2025 tax policies, export agency commissions mainly involve these taxes:

• Value Added Tax: Commission income subject to 6% VAT (3% for small-scale taxpayers)
• Corporate income tax: Domestic agencies must include commission income in taxable income at 25% rate
• Withholding income tax: 10% withholding tax for overseas commissions (without tax treaties)

How to accurately calculate commission VAT?

Example for a trading company receiving 100,000 yuan commission:

• General taxpayer: 100,000 × 6% = 6,000 yuan
• Small-scale taxpayers: 100,000 × 3% = 3,000 yuan

Special Attention:The deductible input tax must comply with the "three flows consistency" principle, which requires the alignment of contract, fund, and invoice flows.

What are the special regulations for paying overseas commissions?

• Withholding tax process:
  • Determine whether the service occurs entirely outside China
  • Verify preferential tax treaty rates (e.g. 7% for Hong Kong)
  • Complete foreign payment filing
• Filing materials checklist:
  • Chinese-English version of commission agreement
  • Bank foreign payment slip
  • Service authenticity proof materials

How do commission expenses affect corporate income tax?

According to the extended policy in Caishui [2023] No. 17 document:

• Pre-tax deduction limit = service income × 5% (for export agency cases)
• Must simultaneously satisfy:
  • Possess valid legal documentation
  • Payment made to legally qualified intermediaries
  • Payment method complies with commercial practices

Common tax treatment misconceptions

• Misconception 1:Cash commission payments may evade taxes

  2025 central bank new regulations require mandatory reporting for single cash transactions over 50,000 yuan, with violations facing fines of 1-3 times the commission amount.

• Misconception 2:Higher commission ratios are more advantageous

  Commission payments exceeding 10% of total export contract value may be identified as transfer pricing risks

2025 commission tax compliance recommendations

• Establish tiered approval system for commission payments
• Quarterly verification of tax treaty updates
• Adopt blockchain electronic evidence preservation for communication records
• Pay attention to special policies in cross-border e-commerce pilot zones