In the course of operation, a Hong Kong company may pay commissions to others due to business needs. For example, if others introduce a business to a Hong Kong company, the Hong Kong company needs to pay commissions to the referral agent. Can this commission be included in the expenses of the Hong Kong Company and deducted before tax? In accordance with mainland accounting standards, sales commission is true and legitimate, and corresponding vouchers are provided in the sales amount5%Within, can be deducted before tax. The accounting standards in Hong Kong are different from those in China. The sales commission generated by a company in Hong Kong can also be deducted before tax, and there is no specific limit on the proportion, but the following conditions need to be met before accountants do itHong Kong corporate auditIs accepted and confirmed that this expense can be entered into the account:

1The business involving commission is genuine;

2Provide proof of commission payment;

3Commission receipt issued by the commission payee;

4The nationality and ID card number of the commission personnel shall be disclosed.

Although Hong Kong accounting standards have no specific limit on the percentage of commission that can be deducted before tax, if the amount of commission paid is too large, the Hong Kong Inland Revenue Department will require the Hong Kong company to provide a commission agreement, explaining the calculation base and calculation method of the commission, as well as the specific services provided by the agent, in order to verify the authenticity and rationality of the commission payment.

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