Assessing tax: 2012 tax rate benchmarking study for industrial products and services companies

DOWNLOAD

The 2012 edition of Assessing tax benchmarked 324 industrial products and services companies across six sectors, including aerospace and defense, chemicals, engineering and construction, industrial manufacturing, metals, and transportation and logistics. The report provides a detailed analysis of tax rate metrics to highlight trends for the companies overall and by sector. Tax rate benchmarking can give company executives valuable data and insight into their tax functions, helping them to evaluate departmental strategy and performance.

This year's edition begins with a special report on transfer pricing in the context of globalization, supply chain management, and merger and acquisition activity. For industrial products and services companies that are doing business in and with emerging economies, the implementation of an effective transfer pricing program has become an important and challenging aspect of tax strategy.

Click on the figure below to view a key finding of the report. We will be providing other charts in the near future.

Assessing tax 2012 tax rate benchmarking study for industrial products and services companies     Contacts Michael Burak US and Global Industrial Products tax leader Tel.: +1 (973) 236 4459   (c) 2011-2012 PwC. All rights reserved. PwC refers to the network of member firms of PricewaterhouseCoopers International Limited (PwCIL), or, as the context requires, individual member firms of the PwC network. Each member firm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm nor can it control the exercise of another member firms professional judgment or bind another member firm or PwCIL in any way.

The average three-year effective tax rate (ETR) of industrial products companies is 26.3%. The rate in 2011 (26.9%) was higher than the rate in 2010 (25.3%). Quartile 3 remained fairly constant between 2011 and 2010, but Quartile 1 increased, due in part to the recovery in the sector. As fewer companies incurred losses with associated tax benefits, there was less volatility in the ETR.