When calculating the personal income tax of a sponsoring lawyer, case handling expenses (including transportation fees, information fees, communication fees, hiring personnel, etc.) can be deducted at 30% of the commission income, that is, 70% of the commission income of the sponsoring lawyer should be regarded as taxable income. In this case, the partnership law firm will first treat the case-handling commission income obtained by the funded lawyer as the partnership law firm's expenses (the case-handling invoice cannot be reimbursed at the partnership law firm at the same time). When calculating personal income tax, the case-handling commission income 70 should be included in the annual operating income of the partnership law firm.
Legal basis:
Announcement of the State Administration of Taxation of the People's Republic of China on Individual Income Tax for Law Firm Employees: Article 5: October 2013 to February 2015 to February 2015 to 31, as The standard for lawyers working in law firms to deduct case-handling fees from their income is adjusted to 35% of the monthly income.