What was the effective tax rate for Petro Stopping Center in 2022?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Profit (loss) before taxation | 4,044 | 6,087 | 15,030 |
| Tax charge (credit) on profit or loss | 773 | 1,128 | 4,589 |
| Effective tax rate | 19 % | 19 % % of profit before taxation | 31 % |
| US statutory corporation tax rate | 21 | 21 | 21 |
| Increase (decrease) resulting from | |||
| Taxes on foreign operations at other than 21% | — | (7) | 9 |
| State income taxes, net of Federal income tax offset | 1 | 3 | 1 |
| Items not deductible for tax purposes | 1 | 2 | 1 |
| Adjustments in respect of prior years | 2 | (2) | — |
| Share based compensation | — | (1) | — |
| Non-controlling interest | (1) | — | — |
| Valuation allowance | (6) | 3 | (1) |
| Other | 1 | — | — |
| Effective tax rate | 19 | 19 | 31 |
Source: Item 23 — RECEIPTS **RECEIPTS (FDD pages 87–131)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, the effective tax rate in 2022 was 31%. The effective tax rate is calculated based on the profit before taxation and the tax charge on profit or loss.
The FDD also provides a reconciliation of the US statutory corporate income tax rate to the effective tax rate of Petro Stopping Center on profit or loss before taxation. In 2022, the US statutory corporation tax rate was 21%. The reconciliation further breaks down the increase or decrease resulting from taxes on foreign operations at other than 21% (9%), state income taxes net of Federal income tax offset (1%), items not deductible for tax purposes (1%), adjustments in respect of prior years (0%), share based compensation (0%), non-controlling interest (0%), and valuation allowance (-1%).
Prospective franchisees should understand that the effective tax rate can vary from year to year due to several factors. These factors include adjustments for prior years, differences in tax rates in foreign operations, state income taxes, and non-deductible items. Reviewing these factors can provide insight into how the company's tax obligations may change over time.
It is important to note that income tax obligations within the US are paid by the parent company, BP America. Therefore, no outstanding US income tax receivable, payable, or cash flows are presented within these financial statements for Petro Stopping Center.