What was the tax charge (credit) on profit or loss 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 tax charge on profit or loss in 2022 was $4,589 million. This figure is part of a reconciliation of the US statutory corporate income tax rate to the effective tax rate of the company on profit or loss before taxation. The effective tax rate for Petro Stopping Center in 2022 was 31%.
The reconciliation table also provides additional context, breaking down the factors that contribute to the effective tax rate. These include taxes on foreign operations at other than 21%, state income taxes net of the Federal income tax offset, items not deductible for tax purposes, adjustments in respect of prior years, share-based compensation, non-controlling interest, and valuation allowance.
Prospective franchisees should understand that these tax figures reflect the overall financial performance and tax obligations of Petro Stopping Center. While franchisees do not directly pay these taxes, the company's profitability and tax strategy can impact the resources available for franchisee support, brand development, and overall system growth. Understanding these figures can provide a more comprehensive view of the financial health of the Petro Stopping Center franchise system.