What is the procedure for the distribution of net profits

In accordance with the Companies Act.

and other relevant laws and regulations, the net profit realized by the enterprise in the current year.

In general, the allocation should be made in the following order;

1. Withdrawal of statutory surplus provident fund, 10% of the net profit after tax for corporate enterprises (non-corporate enterprises can also be withdrawn at a rate of more than 10%), and the company's statutory provident fund.

The cumulative amount is the registered capital of the company.

When it is more than 50%, you can no longer withdraw the statutory provident fund.

If the company's statutory reserve fund is insufficient to make up for the losses of previous years, it shall first use the profits of the current year to make up for the losses before withdrawing the statutory reserve funds.

2. Withdraw any provident fund (generally calculated at 5%)

3. Distribute profits or dividends to investors. The after-tax profit after the company makes up for the loss and withdraws the provident fund, the shareholders of the limited liability company will receive dividends according to the proportion of the paid-in capital contribution, and the shares will be distributed according to the proportion of shares held by the shareholders.

According to the provisions of the Company Law of the People's Republic of China and other relevant laws and regulations, the net profit realized by an enterprise in the current year shall generally be distributed according to the following contents, order and amount:

1. Calculate the profit available for distribution.

The net profit (or loss) for the year is combined with the undistributed profit (or loss) at the beginning of the year to calculate the profit available for distribution. If the profit available for distribution is negative (i.e. a loss), no subsequent distribution can be made; If the distributable profit is positive (i.e., the year-to-date profit), a subsequent distribution is made.

2. Withdraw the statutory surplus provident fund.

On the premise that there is no accumulated loss at the beginning of the year, the statutory surplus reserve fund shall be withdrawn at the rate of 10% of the net profit after tax. When the statutory surplus reserve fund has reached 50% of the registered capital, it can no longer be withdrawn. The statutory surplus reserve fund withdrawn is used to cover losses in previous years or to increase capital.

However, the statutory surplus reserve fund retained after the conversion of capital shall not be less than 25% of the registered capital.

3. Withdraw any surplus provident fund.

The standard for withdrawing any surplus reserve fund shall be determined by the general meeting of shareholders and may also be used for distribution after the approval of the general meeting of shareholders if necessary.

4. Pay dividends (distribution of profits) to shareholders (investors).

The undistributed profits of an enterprise in previous years may be consolidated into the current year's distribution.

If the shareholders' meeting or the board of directors of the company violates the above-mentioned order of profit distribution and distributes profits to shareholders before making up for losses and withdrawing statutory provident fund, the profits issued in violation of the regulations must be returned to the company.

The distribution of after-tax profits shall be made up for the losses of previous years, the statutory provident fund and the Community Chest shall be withdrawn in order, and then the profits shall be distributed to investors.

The net profit realized by an enterprise in the current year shall generally be distributed in the following order:

1.Withdrawal of statutory provident fund and statutory community chest. The statutory provident fund is withdrawn at a rate of 10% of the after-tax profits.

When the cumulative amount of the company's statutory reserve fund is more than 50% of the company's registered capital, the statutory provident fund can no longer be withdrawn. The statutory community chest is withdrawn at a rate of 5%-10% of the after-tax profits.

2.Withdraw any CPF fund. After withdrawing the statutory provident fund and the statutory community chest, the company can withdraw any provident fund by resolution of the general meeting of shareholders.

3.Distribution of profits or dividends to investors. The remaining profits after the company makes up for the losses and withdraws the provident fund and the statutory public welfare fund, and the limited liability company distributes the profits to the shareholders according to the proportion of the shareholders' capital contributions; Dividends are distributed according to the shares held by shareholders.

Summary. Dear, glad to answer for you. How to allocate net profit:

1. Make up for the losses of previous years: According to the provisions of China's financial and tax system, the annual losses of enterprises can be made up by the pre-tax profits of the next year, and if the pre-tax profits of the next year are not enough to make up, they can continue to be made up by the profits of the following years, but the continuous period of using the pre-tax profits to make up for the losses of the previous years shall not exceed 5 years. 2. Withdraw the statutory surplus provident fund.

According to the provisions of the Company Law, the withdrawal ratio of the statutory surplus reserve fund is 10% of the after-tax profit (after making up for losses) for the current year. 3. Withdrawal of arbitrary surplus provident fund: According to the provisions of the Company Law, after the company withdraws the statutory reserve fund from the after-tax profits, it can also withdraw any reserve fund from the after-tax profits by the resolution of the shareholders' meeting or the general meeting of shareholders.

4. Distribution of profits to investors: According to the provisions of the Company Law, the company can distribute dividends (profits) to shareholders (investors) for the after-tax profits remaining after making up losses and withdrawing provident funds.

Dear, glad to answer for you. How to distribute the net profit: 1. Make up for the loss of the previous judgment year:

According to the provisions of China's financial and taxation system, the annual loss of an enterprise can be made up by the pre-tax profit of the next year, and if the pre-tax profit of the next year is not enough to make up for the company, it can continue to be made up by the profit of the following year, but the continuous period of using the pre-tax profit to make up for the loss of the previous year shall not exceed 5 years. 2. Withdrawal of statutory surplus reserve fund: According to the provisions of the Company Law, the withdrawal ratio of statutory surplus reserve fund is 10% of the after-tax profit (after making up for losses) of the current year.

3. Withdrawal of arbitrary surplus provident fund: According to the provisions of the Company Law, after the company withdraws the statutory reserve fund from the after-tax profits, it can also withdraw any reserve fund from the after-tax profits by the resolution of the shareholders' meeting or the general meeting of shareholders. 4. Distribution of profits to investors:

According to the provisions of the Company Law, the after-tax profits remaining after the company has made up the losses and withdrawn the provident fund, and the dividends (profits) can be distributed to shareholders (investors).

Data expansion: The company shall distribute profits in the following order: 1. Make up for the losses of previous years, but shall not exceed the compensation period stipulated in the tax law.

2. Pay income tax. That is, the company should pay enterprise income tax in accordance with the provisions of China's "Enterprise Income Matching Tax Law". 3. Make up for the losses that still exist after the pre-tax profit makes up for the loss.

4. Withdraw the statutory provident fund. 5. Withdraw any provident fund. 6. Distribute profits to shareholders.

Profit distribution refers to the distribution of the total profits realized by the enterprise and the profits distributed from the joint venture units in a certain period of time (usually annual) between the state and the enterprise, and between the enterprises according to the regulations. The procedure for profit distribution is generally divided into three stages: (1) Based on the total profits realized by the enterprise plus the profits distributed from the associated units, i.e., the total income of the enterprise, before paying the income tax and adjusting the tax, the associates, creditors and the tax-exempt items of the enterprise shall be deducted for the initial distribution.

The tax exemption items deducted mainly include: profits distributed to joint ventures, profits from repayment of infrastructure loans and special loans, profits from repayment of loans, employee benefits and incentives withdrawn, profits from previous years, and various individual retained profits of enterprises (such as net profits left to enterprises for "three wastes" products, profits left to enterprises for processing and assembly business with foreign materials), etc. For enterprises that implement the contract operation responsibility system, after the pre-tax profit distribution, they shall hand over the contract profits in the form specified in the contract (turning over the profit increment contract, turning over the profit base lump sum and excess income share, etc.) during the contract operation period, and no income tax and adjustment tax will be levied.

The balance of the total income after deducting the initial distribution is the taxable income of the enterprise. (2) Based on the taxable income of the enterprise, the amount of tax payable shall be calculated according to the prescribed income tax rate and the adjusted tax rate, and shall be redistributed between the state and the enterprise. The balance of taxable income after deducting the tax payable is the retained profit of the enterprise.

3) Based on the company's retained profits, the company's retained profits will be transferred to various special uses according to the prescribed ratio.

In general, the procedure for the distribution of profits is as follows:

Determine the net profit: First, you need to calculate the net profit of the enterprise, that is, the total revenue minus the total costs and taxes and other expenses.

Statutory retained profits: According to the laws and regulations of the country and the articles of association of the enterprise, determine which stool must retain the proportion of profits. This part of the profit is generally used for the future development of the enterprise, reinvestment or taxes.

Distribution of dividends: A business may choose to pay a portion of its profits to shareholders as dividends. Dividends can be distributed in proportion to the shares, or according to the amount invested by the shareholders, the shareholders' agreement, or the company's resolution.

Bonus distribution: Enterprises can set up a bonus system to give bonuses or dividends to employees based on their work performance or other evaluation indicators.

Increase retained profits: Companies can decide to keep a portion of their profits within the company for future growth and scaling.

The above procedures can be adjusted and modified according to the specific situation and decision-making of the enterprise. The distribution of profits is an important decision involving the interests of all parties, and it is necessary to consider the financial status of the enterprise, laws and regulations, as well as the rights and interests of shareholders, employees and other relevant parties. Therefore, it is advisable to consult an accountant or legal counsel on a case-by-case basis to ensure that the profit distribution complies with the corresponding regulatory requirements and that the interests of the business are maximized.

Summary: The general procedure of profit distributionThe profit distribution procedure refers to the steps that a corporate enterprise must go through in accordance with applicable laws, regulations or regulations to distribute the net profit realized by the enterprise within a certain period. According to the relevant provisions of the Company Law of the People's Republic of China, the total profit realized by an enterprise in the current year shall be made in accordance with the provisions of the relevant tax laws of the state.

General Procedures for Profit DistributionThe profit distribution procedure refers to the steps that must be taken by a corporate enterprise to distribute the net profit realized by the enterprise in a certain period in accordance with applicable laws, regulations or regulations. According to China's "Company Law" and other relevant provisions, the total profit realized by an enterprise in the current year should be adjusted accordingly in accordance with the provisions of the relevant national tax laws, and then pay income tax in accordance with the law. General procedure for the distribution of net profit after payment of income tax.

The profit distribution procedure refers to the steps that must be taken by a corporate enterprise to distribute the net profit realized by the enterprise in a certain period of time in accordance with applicable laws, regulations or regulations.

According to China's "Company Law" and other relevant provisions, the total profit of an enterprise in the current year should be adjusted accordingly in accordance with the provisions of the relevant national tax laws, and then pay income tax in accordance with the law. The net profit after the payment of income tax is distributed in the following order.

1.Make up for losses in previous years.

According to the provisions of China's financial and taxation system, the annual loss of an enterprise can be made up by the pre-tax profit of the next year, and if the pre-tax profit of the next year is not enough to make up, it can continue to be made up by the profit of the following year, but the continuous period of using the pre-tax profit to make up for the loss of the previous year shall not exceed 5 years. If the deficiency is made up within 5 years, the after-tax profit of the current year shall be used to make up for it. The net profit of the current year plus the undistributed profit at the beginning of the year is the profit available for distribution of the enterprise, and only when the profit available for distribution is greater than zero, the enterprise can make subsequent distribution.

2.Withdrawal of Statutory Surplus Provident Fund.

According to the provisions of the Company Law, the withdrawal ratio of the statutory surplus reserve fund is 10% of the after-tax profit (after making up for losses) for the current year.

When the statutory surplus reserve fund has reached 50% of the registered capital, it can no longer be withdrawn. The statutory surplus reserve fund can be used to make up for losses, expand the company's production and operation or increase capital, but after the company uses the surplus reserve fund to increase the capital, the balance of the statutory surplus reserve shall not be less than 25% of the company's registered capital before the conversion.

3.Withdraw any surplus reserve.

According to the provisions of the Company Law, after the company withdraws the statutory reserve fund from the after-tax profits, it can also withdraw any reserve fund from the after-tax profits by resolution of the shareholders' meeting or the general meeting of shareholders.

4.Distribution of profits to investors.

According to the provisions of the Company Law, the after-tax profits of the company after making up for losses and withdrawing provident fund can distribute dividends (profits) to shareholders (investors), of which the shareholders of a limited liability company shall receive dividends in accordance with the proportion of their paid-in capital contributions, unless all shareholders agree not to distribute dividends in accordance with the proportion of capital contributions; Shares are distributed in proportion to the shares held by shareholders, except for those that are not distributed in proportion to the shares held by the articles of association.

According to the provisions of the Company Law, if the profits are distributed to the shareholders before the company makes up the losses and withdraws the statutory provident fund, the shareholders must return the profits distributed in violation of the provisions to the company.

Profit distribution refers to the distribution of the net fictitious profits realized by enterprises among shanty enterprises and investors in accordance with the distribution form and distribution order stipulated by the state financial system. The process and result of profit distribution is an important issue related to whether the legitimate rights and interests of the owners can be protected and whether the enterprise can develop in a long-term and stable manner. The main body of enterprise profit distribution is investors and enterprises, and the object of profit distribution is the net profit realized by enterprises; The time of profit distribution, that is, the time when the profit distribution is confirmed, is the time when the profit distribution obligation occurs and the time when the enterprise makes a decision to distribute profits from the inside out.

Article 34 of the Company Law provides that shareholders shall receive dividends in accordance with the proportion of their paid-in capital contributions; When the company adds new capital, shareholders have the right to subscribe for capital contributions in accordance with the proportion of paid-in capital contributions. However, all shareholders agree not to distribute dividends in accordance with the proportion of capital contribution or do not subscribe for capital contribution in priority according to the proportion of capital contribution. Paragraph 1 of Article 166 of the Company Law on the Distribution of After-tax Profits of the Year shall be withdrawn 10% of the profits and included in the company's statutory provident fund.

If the cumulative amount of the company's statutory reserve fund is more than 50% of the company's registered capital, it can no longer be withdrawn.