Taxes on Income

9 Months Ended

Sep. 30, 2022

Taxes on Income

Taxes on Income

16. Taxes on Income

The company’s effective tax rate was 8.6 percent and 17.2 percent for the three and nine months ended September 30, 2022, respectively. As compared to the statutory U.S. tax rate, the effective tax rate for the three and nine months ended September 30, 2022, was reduced by 10.8 and 5.9 percentage points for the sale of the Russian aluminum beverage packaging business, respectively, reduced by 5.1 and 2.8 percentage points, respectively, for non-U.S. rate differences net of withholding taxes and reduced by 2.2 and 2.6 percentage points, respectively, for federal tax credits. The effective rate for the three and nine months ended September 30, 2022, increased by 3.8 and 3.0 percentage points, respectively, for U.S. permanent differences.

The company’s effective tax rate was negative 1.2 percent and 20.6 percent for the three and nine months ended September 30, 2021, respectively. As compared to the statutory U.S. tax rate, the effective tax rate for the three and nine months ended September 30, 2021, was reduced by 13.9 and 5.8 percentage points, respectively, for federal tax credits, reduced by 3.5 and 3.1 percentage points, respectively, for non-U.S. rate differences net of withholding tax and reduced by 2.8 and 1.6 percentage points, respectively, for share-based compensation. For the nine months ended September 30, 2021, the effective tax rate was increased by 8.0 percentage points for the U.K.’s enacted tax rate change.