Can the in-kind reward given by the insurance company to the insurance agent be deducted before tax?

According to the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Several Policy Issues concerning Business Tax (Caishui [2003] 16), "III. Turnover ... (6) If an insurance enterprise engages in non-compensation incentive business, the actual premium charged to the insured shall be the turnover. " Deductible dividend expenditure is a kind of reward for the insured, but there is no insurance compensation expenditure. According to the provisions of the tax law, if an insurance company conducts unpaid and non-reward business, it shall take the actually collected premium as its turnover. However, whether the deductible dividend expenditure can be deducted depends on the amount on the insurance policy issued by the insurance company. If uncompensated incentive expenses are paid separately, the tax basis for calculating business tax cannot be deducted from uncompensated incentive expenses; If the uncompensated dividend expenditure takes the form of premium reduction, that is, the insurance policy is issued according to the balance after deducting the uncompensated dividend expenditure, then the business tax can be calculated according to this balance. This is in line with the Notice of Qingdao Local Taxation Bureau on Answering Some Tax Policy Questions on Issuing Business Tax and Property Behavior Tax (Qing Di Shui Fa [2003] 166), which explains that the deductible reward business means that the insurance company uses the deductible reward amount agreed in the current contract to offset the premium amount that should be charged to the policyholder in the current or later period, and the actual premium amount is regarded as the turnover in the current or later period. If the insurance company returns the gratuitous reward in cash or in kind, the taxable turnover shall not be reduced if the gratuitous reward returned is not indicated on the invoice for premium collection.

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