Export Options:
Fundamental
Effective Tax Rate
Income tax expense / Pre-tax income
Definition
Effective tax rate is the actual tax paid as a percentage of pre-tax income. It differs from statutory rates due to tax credits, deductions, and special treatments. Lower effective rates increase after-tax profits.
Related Topics
#taxation
#after-tax income
#tax planning
#statutory rate
Quick Actions
Related Terms
Category: Fundamental
Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.
View all Fundamental terms →