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How does the tax bureau evaluate the profit level of enterprises? Is it cost profit rate or sales profit rate? What is the formula of assessment index? _
Tax assessment enterprises generally take the two as reference, giving priority to cost-profit ratio.

The denominator of sales profit rate has a strong correlation with turnover tax; The denominator cost of cost profit rate has a strong correlation with income tax.

Cost profit rate = profit/cost

Sales profit rate = profit/sales.