The tax department is responsible for GitLab’s overall tax strategy including all components of tax compliance, tax planning and accounting for income taxes. Defining our success as a Tax Team for having an Effective Tax Risk Managament is also measured by our perfomance indicators.
The ETR is calculated by dividing the total tax expense by the earnings before tax (EBT). In formula: ETR = Total Tax Expense / EBT. The target percentage is to be determined.
Measures the percentage deviation between the actual corporate tax expense and the planned corporate tax expense over the same time period. The time period may be monthly, quarterly, or yearly. In formula: Percentage Deviation = (Actual Expenses -/- Planned Expenses) / planned expenses * 100%. The target percentage is to be determined.
The financial measurement of tax risk is a typical approach for the Tax Team as these metrics are readily available and impact earnings per share (EPS) and other financial measures. One of the PI's is the frequency and magnitude of audit adjustments. The target amounts are to be determined.