2016年-普华永道全球_Assessing_tax_2016_to_examine_effective_tax_rates_and_gain_insight_into_key_industry_trends_48页_1mb

2016 Tax Rate Benchmarking Study Summary for Industrial Products and Automotive Sectors

Core Content

This 2016 Assessing Tax benchmarking study provides an analysis of effective tax rates (ETR) across six industry sectors: Aerospace, Automotive, Chemicals, Engineering and Construction (E&C), Industrial Manufacturing and Metals (IM&M), and Transportation and Logistics (T&L). The study includes data from 290 companies, with a focus on understanding ETR trends and the key drivers behind them, including tax incentives, foreign operations, and structural changes in the tax landscape.

Key Sectors and ETR Trends

Aerospace Sector

• Three-year average ETR: 25.1% for all companies.
• Profitable companies: 26.8% average ETR.
• US-based companies: 27.2% average ETR.
• Non-US-based companies: 22.1% average ETR.
• Drivers:
  • Most favorable: Tax losses (reduced ETR by 5.6 percentage points).
  • Second most favorable: Tax incentives (reduced ETR by 3.1 percentage points).
  • Most common: Impact of foreign operations (reduced ETR by 2.5 percentage points).
  • Unfavorable: Nontaxable income and nondeductible expenses (2.6 percentage points), and various other adjustments (0.5 percentage points).

Automotive Sector

• Three-year average ETR: 27.2% for all companies.
• Profitable companies: 28.4% average ETR.
• Regional ETRs:
  • North America: 28.4%.
  • Asia: 30.0%.
  • Europe: 25.1%.
• Subsectors:
  • Automobiles: 23.1% average ETR (26.9% for profitable companies).
  • Auto Parts: 28.6% average ETR (29.0% for profitable companies).
• Drivers:
  • Most common: Impact of foreign operations (reduced ETR by 3.1 percentage points).
  • Most favorable: Tax incentives (reduced ETR by 3.7 percentage points).
  • Unfavorable: Equity earnings (reduced ETR by 1.3 percentage points).

Key Industry Trends and Drivers

• Global ETR trends:
  • The three-year average ETR for all companies was 27.6%.
  • The interquartile range increased slightly from 13.8% to 15.2%, indicating increased volatility in ETRs, especially in E&C and IM&M sectors.
  • T&L sector had the highest ETRs, likely due to limited cross-border benefits.
• Statutory vs. ETR:
  • The differential between statutory and ETR was most pronounced in the US, Germany, France, and Sweden.
  • Switzerland, South Korea, and Canada had ETRs close to their statutory rates.
• Tax Incentives:
  • The most favorable driver, reported by 119 companies, reduced ETR by 3.2 percentage points.
  • US-based companies had an average benefit of 3.5 percentage points.
• Foreign Operations:
  • The most common driver, reported by 211 companies, had an average favorable impact of 1.7 percentage points.
  • For countries with high statutory tax rates, the impact was greater.
  • In countries with low statutory rates, foreign operations had an unfavorable impact.
• Tax Reserve Adjustments:
  • This item included adjustments to prior-year tax accruals, contingent liabilities, and audit settlements.
  • 56 companies had a favorable impact, while 43 had an unfavorable impact.
• Nontaxable Income and Nondeductible Expenses:
  • Had an average impact of 1.4 percentage points.
  • Increased ETRs for all sectors.
• Tax Losses and Valuation Allowances:
  • Increased ETR by 1.6 percentage points overall.
• Unrecognized Tax Benefits (UTBs):
  • Average UTB for US-based companies was $247 million.
  • UTB balances increased by 5.0% from 2014 to 2015.
  • The largest movements were in current-year tax positions.
• Unrepatriated Foreign Earnings:
  • US-based multinationals must account for deferred tax liabilities on undistributed earnings.
  • Total unrepatriated earnings in the aerospace sector in 2015 was $52.5 billion.
• Statute of Limitations:
  • Average number of open tax years across sectors was 7.
  • Chemicals sector had the highest average number of open tax years.

Conclusion

The study highlights the importance of understanding ETR trends and their drivers, especially in light of changing global tax regulations and the increasing scrutiny of corporate tax strategies. It emphasizes the role of tax incentives, foreign operations, and valuation allowances in shaping ETRs, and underscores the need for companies to align their tax strategies with evolving market conditions and regulatory environments.