The statutory rate on corporate income, which is the statutory corporate rate adjusted for all other taxes and subsidies affecting an MNE's taxable income, determines the company's net return from its revenues.

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The statutory rate on corporate income is the legally established rate set by law, not adjusted for other taxes, subsidies, or deductions that might affect a multinational enterprise's (MNE's) taxable income. The effective tax rate, which takes into account these adjustments, determines the company's net return from its revenues.

The Statutory Rate on Corporate Income, Which Is the Statutory