What Is Profit Before Tax?

Profit before tax is the taxable profit before the enterprise pays income tax. After the second step, the state-to-enterprise distribution relationship has undergone a major change. Most of the profits realized by the enterprise are paid to the state in the form of income tax and adjustment tax, and the rest is left to the enterprise. Therefore, two concepts of profit before tax and profit after tax have emerged in profit distribution. According to the tax law, the taxable profit of an enterprise's income tax refers to the total income (including non-operating income) of an enterprise for each tax year minus costs, expenses, taxes allowed by the state before income tax, and the balance after non-operating expenses The total profit of the enterprise. ^[1]

profit before tax

Profit before tax is the taxable profit before the enterprise pays income tax. After the second step, the state-to-enterprise distribution relationship has undergone a major change. Most of the profits realized by the enterprise are paid to the state in the form of income tax and adjustment tax, and the rest is left to the enterprise. Therefore, two concepts of profit before tax and profit after tax have emerged in profit distribution. According to the tax law, the taxable profit of an enterprise's income tax refers to the total income (including non-operating income) of an enterprise for each tax year minus costs, expenses, taxes allowed by the state before income tax, and the balance after non-operating expenses. The total profit of the enterprise. ^[1]

Product profit before tax = product sales income-

Profit before tax = total profit, that is, profit before income tax is paid.

Total profit = operating profit + net investment income + non-operating income-non-operating expenses

Operating profit = main business profit + other business profit

Profit from principal operations = Revenue from principal operations-Cost of principal operations-Periodic expenses-Taxes and surcharges on principal operations = Revenue from principal operations-Costs of principal operations-Sales expenses-Finance costs-Management expenses-Taxes and supplements on principal activities

Profit from other businesses = Other business income-Other business costs-Other business taxes and surcharges

Net investment income = Investment income-Investment loss

Among them, for industrial enterprises, total profit = sales profit + net investment income + non-operating income-non-operating expenses; for commercial enterprises, total profit = operating profit + net investment income + summary profit and loss + non-operating income-operating Foreign expenditure + state subsidy income. ^[2]

EBIT = total profit + interest expense

Profit after tax = net profit

Net profit = total profit-income tax

Gross profit = net income from main business-main business expenditure-main business taxes and surcharges