Insurance agents have relatively high business expenses. They will apply for a business registration certificate in the form of self-employment, open a sole proprietorship, and then report income and commissions in the profits tax to obtain greater deductions. In fact, the Inland Revenue Department will check the relationship between the insurance agent and the insurance company to determine whether the insurance agent is an employee or self-employed to promote and negotiate insurance contracts on behalf of the insurance company. The Inland Revenue Department will consider the following points to determine the relationship between the parties:
• Does the insurance company require that the agent cannot hire other people to provide services, but must provide the service in person?
• Will the agent be controlled or supervised by the insurance company when performing his duties?
• Does the insurance company pay remuneration regularly, and how is the remuneration calculated?
• Does the agent participate in the management work, will it bear financial risks, and will it be necessary to provide the main work equipment by itself?
The above information is for reference only. If in doubt, we welcome your tax inquiries