Effective tax rate: Difference between revisions
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* [[Profit before interest and tax]] | * [[Profit before interest and tax]] | ||
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Revision as of 08:16, 8 October 2013
(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'.)
