Effective tax rate
From ACT Wiki
(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'.)
Relevant accounting standards include Section 29 of FRS 102.
