Calculating Annualized Estimated Effective Tax Rate (AEETR)

Tax Reporting applies the annualized effective tax rate (AEETR) from forecast scenarios to actual results for interim provisioning. Tax and finance teams use this automation to ensure accurate, timely tax estimates and streamline compliance throughout the year. The result is efficient, up-to-date tax reporting and improved planning.

To calculate AEETR:

• Apply Global AEETR: After calculating the forecasted AEETR in the Interim provision forecast scenario, the Global AEETR now can be applied to all Entities NIBT in the Actual scenario on the Interim Provision form. See Identifying Global AEETR Entity
• Automate the AEETR from any Scenario into any target Scenario by selecting:
  • Interim scenario where AEETR is being calculated
  • Actual scenario where the AEETR is being pushed. See Identifying Interim Scenario
• Mapping data to the Tax Account Rollforward (TAR) from the Interim Provision is supported using TAR Automation. See Setting up TAR Automation Journal Entry