Bruttoprovision

Bruttoprovision is a term used primarily in German-speaking markets to describe the gross commission earned by a sales agent, broker, or intermediary from a sale or contractual arrangement before any deductions. It is most commonly encountered in insurance distribution, financial services, and real estate, where agents earn commissions as a percentage of the sale value or premium.

As a gross figure, bruttoprovision includes the total entitlement from a transaction, such as upfront commissions, renewal or trailing commissions, bonuses, and any tiered increases related to performance. It does not reflect deductions such as taxes, social security contributions, or splits with a parent company or agency. In practice, organizations may report both bruttoprovision and netto provisions to provide a view of total entitlement versus net earnings after required withholdings and internal deductions.

The term is used in compensation planning, performance reviews, and regulatory disclosures within sales-driven industries. It helps compare revenue-generating capacity across individuals, teams, or products and can inform incentive structures and budgeting. Because tax treatment and payroll practices vary by jurisdiction, bruttoprovision is often contrasted with netto provision, which denotes the amount received after applicable deductions.

Example: if a broker closes a policy with a yearly premium of 1,000 euros and holds a 15% commission rate, the bruttoprovision for that sale would be 150 euros, before any taxes or agency splits. See also related terms such as netto provision and provision (insurance).