Net profit is the bottom line — literally the last line of the P&L. It differs from gross profit (which only deducts COGS) and from EBITDA (which adds back interest, tax, depreciation, and amortisation). For UAE corporate tax, the starting point for calculating taxable income is the accounting net profit, which is then adjusted upward for non-deductible expenses and downward for exempt income and reliefs. A business can have positive gross profit but negative net profit if its operating expenses, interest costs, or depreciation charges are too high.
See also: Gross Profit, Profit and Loss Statement (P&L), Taxable Income
