1, according to State Taxation Administration of The People's Republic of China (2006) No.454 document and Shanghai Local Taxation Bureau (2006) No.7 document, the commission of insurance salesmen consists of exhibition costs and labor remuneration, and 40% of the commission is exempt from personal income tax. Personal income tax shall be calculated and levied in accordance with the relevant provisions of the tax law after deducting the actual business tax and surcharges. And began to implement in June 2006.

2. According to the regulations of Shanghai Taxation Bureau, the individual income tax declared in July 2006 is implemented according to the new regulations. That is, the commission actually paid in June will be implemented in July 15 according to the new regulations.

Appendix: Calculation formula of commission tax rate for insurance agents

Business tax = total commission income *5%

Business tax surcharge = business tax * 1 1% (urban construction tax 7%, education surcharge 3%, river management fee 1%)

The business tax threshold is more than 5000 yuan (inclusive).

Individual tax exhibition fee = total commission income *40%

Calculation base of individual tax adjustment A= (total commission income-exhibition industry cost)-business tax and surcharges.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.