Because as long as it is established in accordance with the provisions of the company law, it is required to withdraw the surplus reserve fund according to the after-tax net profit. Here are the questions I answered for others. For your reference only. 1. Surplus reserve is mainly divided into statutory surplus reserve and arbitrary surplus reserve. Moreover, the company law clearly stipulates that the statutory surplus reserve shall be drawn at 10% of the after-tax net profit (or after-tax profit). However, there is no specific extraction standard for any surplus reserve. Because the company decides whether to withdraw any surplus reserves, if it wants to withdraw any surplus reserves, it can refer to the proportion of statutory surplus reserves. In addition, the company also stipulates that if the statutory surplus reserve extracted by the enterprise has exceeded 50% of the registered capital, it is not necessary to extract it. (Note that this provision is used as "may" and does not need to be withdrawn. This is not mandatory. If the enterprise is willing to quit, it is ok. In addition, if the enterprise has a loss, it must first make up for it. After making up the losses, if there is a surplus (here, after paying income tax), it can continue to be withdrawn. But if it is not enough to make up for the losses in previous years, there is no need to quit. 2. There are three main purposes for withdrawing surplus reserve fund: one is to make up for losses. The other is to transfer capital. Third, it is used to expand production scale. 3. The accounting treatment of withdrawal is as follows: debit: profit distribution-withdrawal of statutory surplus reserve-withdrawal of arbitrary surplus reserve loan: surplus reserve-statutory surplus reserve-arbitrary surplus reserve debit: profit distribution-undistributed profit loan: profit distribution-withdrawal of statutory surplus reserve-withdrawal of arbitrary surplus reserve is decided by the enterprise. Therefore, you may or may not make an entry to withdraw any surplus reserve. 4. Regarding the public welfare fund, it should be withdrawn before the company law is amended, and it should be withdrawn according to 5% to 10% of the after-tax net profit. Its main purpose is to pay for employee welfare facilities. However, in the revised company law, it is clearly stipulated that enterprises will no longer withdraw public welfare funds. Moreover, in the document Caiqi [2006] No.67 issued by the Ministry of Finance on March 14, 2006, it was clearly stipulated that since June 10, 2006, enterprises will no longer withdraw public welfare funds (including state-owned enterprises and listed companies here). So you don't want to.