How To Determine The Proportion Of Management Fees?
The management fee of the Department in charge of the enterprise should be approved, and the reasonable expenses of the management fee incurred in the past year shall be the base, the surplus of the management fee should be deducted from the previous year and other income determined by the tax authority (financial appropriation, other self employment income, etc.).
The management fees (including expenses) paid by enterprises are not in principle more than 2% of annual sales (operating) income (including production, business income, property pfer income, interest income, rental income, royalty income, dividend income, and other income).
The proportion of specific approval shall be determined by the local tax bureau in 2% of the districts and counties, and submitted to the Municipal Bureau for record.
According to the ratio, the management fees of the enterprises should be controlled proportionately and at the same time. They can be deducted within the quota and proportion, and the income tax should be adjusted according to the quota and proportion.
For the state owned and collective nature of the subordinate branches and enterprises of the competent departments, the amount and proportion of the management fees approved by the financial departments shall be allowed to be deducted before the tax, and be reduced by the amount and proportion of administrative fees approved by the competent departments.
The management fees of enterprises and branches of the enterprises will not exceed 2% unless they are turned over to several management or industry departments.
To be a good judge
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