What Is a Domestic Production Activities Deduction?

The net domestic production value is the market value of all final products (including goods and services) produced by all resident units in a country (or region) within a certain period of time (usually one year) using net production factors. In physical form, it represents various consumer goods, services, and means of production for net investment. It is the total output of the national economy after deducting the depreciation of fixed assets of the national economy. In terms of value form, it only refers to the value of the product. New value creation. ^[1]

Net domestic product

which is:

Significance of Net Domestic Product ^[2]

Net domestic product (Net Domestic Product, NDP) refers to the gross domestic product obtained after deducting the consumption of production capital from the gross domestic product (GDP). Net national product and net domestic product are basically the same in content, but there are also differences: in nature net domestic product is a concept of production, while net national product is a concept of income; there are also slight differences in the caliber of calculation. Its calculation formula is:

Net national product = Net domestic product + original income from abroad-original income paid to foreign countries