Profit and Loss — Calculation and tax implications
Profit is the positive difference between business revenue and expenses, while loss is the negative difference. Net profit (after taxes) can be distributed as dividends or reinvested.
Definition
Profit is the positive difference between business revenue and expenses, while loss is the negative difference. Net profit (after taxes) can be distributed as dividends or reinvested.
Details
Types: gross profit (revenue − direct costs), operating profit (gross − operating expenses), net profit (operating − taxes). Losses can be carried forward up to 3 years to reduce future tax base. Corporate tax: 10% (1% for micro).
Example
Revenue 6M − Expenses 5M = Profit 1M MKD − Tax 10% (100K) = Net profit 900K MKD. Owner decides: 500K dividend + 400K reinvestment.