noun
effective tax rate
The actual tax burden as a percentage of income or profit, after deductions, credits, and other adjustments. Used in economics, accounting, and policy contexts.
企業の実効税率は法定税率より低いことが多い。
A company's effective tax rate is often lower than the statutory tax rate.
法定税率 is the statutory tax rate set by law, while 実効税率 is the actual rate paid after adjustments.
Compound of 実効 (effective, actual effect) and 税率 (tax rate).