What is the difference between net profit and gross profit?

The difference between net profit and gross profit is: 1, and the probability is different: net profit refers to the total profit of the enterprise in the current period MINUS income tax. Gross profit refers to the main business income minus the main business cost. 2. Different influencing factors: the influencing factors of net profit are total profit and income tax expenses, and the influencing factors of gross profit are the purchase price and selling price of goods. 3. The calculation formula is different: net profit = total profit-income tax expense. Gross profit is equal to main business income-main business cost.

The income tax rate of enterprises is legal, and the higher the income tax rate, the less the net profit. There are two income tax rates in China. One is the income tax rate of 25% for general enterprises, that is, 25% of the total profits should be turned over to the state finance as tax; The other is the preferential tax rate for foreign-funded enterprises and some high-tech enterprises, and the income tax rate is 15%. When the operating conditions of enterprises are equivalent, the enterprises with lower income tax rate have better operating benefits.

The balance of commodity sales income (selling price) of commercial enterprises after deducting the original purchase price of commodities. The symmetry of net profit is also called the difference between the purchase and sale of goods. Because there is no deduction of commodity circulation fees and taxes, it is not net profit, so it is called gross profit.

In China, the difference between the purchase and sale of industrial products refers to the difference between the ex-factory price and the wholesale price of the same product (the difference between the wholesale price and the retail price is called the wholesale price), and the difference between the purchase price of the same agricultural and sideline products and the wholesale price or retail price of the same agricultural and sideline products.