Effective Tax Rate

[mike0021]

anyone remember the formula?
i think its
Corp Tax + (1-Corp Tax * Individual Tax)
or something like that

 

[Niblita75]

Thats correct. The imputation (I think that is spelled correctly) is basically the same thing. The last one (I forget the name) is the same is you marginal tax rate.

 

[dinesh.sundrani]

That formula is for double taxation, I think?
What Nib talked was the imputation tax rate system and we also have split-rate where we have different tax rates for dividends and corporate tax.

 

[maratikus]

mike0021 Wrote:
——————————————————-
> anyone remember the formula?
>
> i think its
>
> Corp Tax + (1-Corp Tax * Individual Tax)
>
> or something like that
here is an easy way to remember double taxation:
pre-tax: $1
after corp tax: 1 - corp tax
after individual tax: (1-corp tax)*(1-individual tax)
effective tax: 1 - (1-corp tax)*(1-ind tax) = corp tax + ind tax - corp*ind tax = corp tax + (1- corp tax)*ind tax = … lots of different ways of expressing the same formula