Effective tax rate: Difference between revisions
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(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. | (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'.) | 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'.) | ||
Revision as of 20:22, 13 August 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'.)
