statutory rate

The statutory rate refers to the legally established percentage at which income, such as earnings or profits, is taxed by the government. It's the official rate set by law, often applied to calculate how much tax a person or business owes. For example, if the statutory corporate tax rate is 25%, a company's taxable income will be multiplied by 25% to determine its tax liability. This rate can vary by country, income type, or specific tax laws, serving as a standard benchmark for calculating taxes owed under the law.