Companies that develop foreign trade generally need to pay corresponding foreign commissions. Commissions can be divided into three types: commissions in Ming Dynasty, commissions in secret societies and accumulated commissions. So how do you keep accounts for paying foreign commissions? Is it necessary to pay taxes?

Accounting treatment of paying foreign commissions

1, maid

Debit: accounts receivable-foreign exchange accounts receivable

Loan: main business income-self-export sales income

Main business income-self-export sales income (commission)

2. Secret servant

Debit: accounts payable-foreign exchange accounts payable (commission)

Loan: main business income-scarlet letter export income

If negotiation commission is adopted, the following entries shall be made when the export goods receive foreign exchange:

Debit: bank deposit

Financial expenses-exchange gains and losses (or blue or red)

Accounts payable-foreign exchange accounts payable (commission)

Credit: accounts receivable-foreign exchange accounts receivable

If remittance fee is adopted, the following entries shall be made when the export goods receive foreign exchange:

Debit: accounts payable-foreign exchange accounts payable (commission)

Loans: bank deposits

3. accumulative commission

Debit: sales expenses

Loans: accounts payable-foreign exchange accounts payable (commission)

Do I have to pay taxes to pay foreign commissions?

The pre-tax deduction policy for handling fees and commission expenses incurred by enterprises is hereby notified as follows: 1. Handling fees and commission expenses incurred by enterprises related to production and operation are allowed to be deducted if they do not exceed the following calculation limits; The excess shall not be deducted.

1. Property insurance enterprise: its limit is calculated according to 15% (including this figure, the same below) of the balance of all premium income in the current year after deducting surrender premium;

2. Personal insurance enterprise: its limit is calculated according to 10% of the balance of all premium income in the current year after deducting surrender premium;

3. Other enterprises: the limit is calculated according to 5% of the income confirmed in the service agreement or contract signed with intermediary service institutions or individuals with legal business qualifications (excluding both parties to the transaction and their employees, agents and representatives, etc.). ). If the withholding business is involved, you can consult the local tax department.

Reference document: Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance on Pre-tax Deduction Policy for Enterprise Handling Fees and Commission Expenses (Caishui [2009] No.29).

What tax should I pay on commission income?

What do you mean by "bright maid", "dark maid" and "accumulated commission"

Ming commission refers to the commission in the invoice, and the enterprise collects the payment according to the net sales payment after deducting the commission, and does not pay any commission; Implicit commission, that is, commission other than invoice, is contrary to explicit commission, and the commission is paid after receiving the payment according to the net sales payment after deducting the commission; Accumulative commission is a commission paid by an export enterprise according to the accumulated amount in a certain period of time, which is underwritten and signed by an agent for customers abroad.