2. Surplus reserve: all kinds of accumulated funds. Surplus reserve includes statutory surplus reserve, arbitrary surplus reserve and statutory public welfare fund. Surplus reserve refers to the accumulation of income extracted from after-tax profits and left in the enterprise with specific purposes. Surplus reserve is divided into public welfare fund and general surplus reserve according to different purposes. The public welfare fund is specially used for the expenditure of welfare facilities for employees of enterprises, such as the purchase and construction of dormitories, nurseries and barbershops. Article 177 of the old "Company Law" stipulates that the corporate enterprise shall withdraw the statutory public welfare fund according to the ratio of 5% to 10% of the after-tax profit. In 2006, the new "Company Law" only stipulated that the company should withdraw the statutory surplus reserve fund according to 10% of the after-tax profit. All provisions on "statutory public welfare fund" have been abolished. The legal surplus reserve is drawn from the net profit (minus the losses of previous years) by the company-based enterprise according to the specified proportion of 10%. The enterprise income tax stipulates that losses in previous years (within five years) can be made up by pre-tax profits, and from the sixth year onwards, they can only be made up by after-tax profits. When the accumulated amount of statutory surplus reserve fund reaches 50% of the registered capital, it shall not be withdrawn. When calculating the base of statutory surplus reserve, undistributed profit at the beginning of the year should not be included.
3. Net profit refers to the amount after deducting income tax from the total profit of the enterprise in the current period, that is, the after-tax profit of the enterprise. Income tax refers to the tax that enterprises calculate and pay to the state according to the standards stipulated in the income tax law. It is the deduction of the total profit of the enterprise. Refers to the company's retained profits after paying income tax according to regulations, which is also commonly known as after-tax profits or net income. The amount of net profit depends on two factors, one is the total profit, and the other is the income tax expense. The calculation formula of net profit is: net profit = total profit-income tax expense. Net profit is the final result of enterprise management. The more net profit, the better the operating efficiency of the enterprise. If the net profit is small, the operating efficiency of the enterprise will be poor, which is the main index to measure the operating efficiency of the enterprise.
Tips: The above contents are for reference only.
Reply time: 202 1- 10-27. Please refer to the latest business changes announced by Ping An Bank in official website.