Newsletter
NON-EMPLOYED INSURANCE SALESPERSONS' COMMISSION IS INCOME FROM PROFESSIONAL PRACTICE
In an interpretation dated 18 July 2008, the Ministry of Finance (MOF) stated that with effect from 1 July 2008, if an insurance salesperson meets the conditions for being deemed not to be in an employment relationship with the relevant insurance company (i.e., the insurance salesperson solicits insurance business independently, and bears profits and losses himself, and the insurance company does not provide employee benefits such as Labor Insurance, National Health Insurance, and pension contributions), then the commission income that the insurance salesperson collects from the insurance company in accordance with his sales performance may be declared as "income from professional practice" under Article 14 Paragraph 1 Category 2 of the Income Tax Act. The income so declared should be the net amount after deduction of direct and necessary expenses, and the ratio of necessary expenses may be calculated according to the ratio of expenses for ordinary brokers, as approved by the MOF.