Effective tax rate

From ACT Wiki
Revision as of 20:32, 26 June 2014 by imported>Doug Williamson (Spacing. Expand page categorisation.)
Jump to navigationJump to search

(ETR).

An accounting measure, calculated by dividing the net tax charge reported in the income statement by the related profit before tax.

The effective tax rate will usually differ from the standard corporate rate of tax.


The quantified explanation of the differences between the effective tax rate and the standard corporate rate of tax is known as a tax reconciliation statement.

(Often abbreviated to 'tax rec'.)


See also