According to the Notice of State Taxation Administration of The People's Republic of China on Exemption from Individual Income Tax on Commission Income of Insurance Salesmen, No.454 [2006] of China, "1. According to the Notice of China Insurance Regulatory Commission on Defining the Composition of Insurance Salesman's Commission (No.48 [2006] of China Insurance Regulatory Commission), the commission of insurance salesmen consists of exhibition expenses and labor remuneration. According to the tax law, the exhibition fee in the commission is not subject to personal income tax; Personal income tax shall be calculated and collected in accordance with the relevant provisions of the tax law after deducting the actual business tax and surcharges.

According to the actual situation of insurance salesmen's exhibition industry, the proportion of exhibition expenses in commission is tentatively set at 40%. "

Therefore, after deducting 40% expenses from income and actual business tax and surcharges, personal income tax should be calculated and levied in accordance with the relevant provisions of the tax law.