Accumulated Earnings Tax

Business, Legal & Accounting Glossary

Definition: Accumulated Earnings Tax


Accumulated Earnings Tax

Quick Summary of Accumulated Earnings Tax


Accumulated earnings tax is one on earnings retained by a business to avoid paying the higher income taxes that would be due if the earnings were paid out to the owners as dividends.




What is the dictionary definition of Accumulated Earnings Tax?

Dictionary Definition


A special tax imposed on corporations that accumulate (rather than distribute via dividends) their earnings beyond the reasonable needs of the business. The accumulated earnings tax is imposed on accumulated taxable income in addition to the corporate income tax.


Synonyms For Accumulated Earnings Tax


Accumulated Profits Tax


Related Phrases


Retained Earnings


Cite Term


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January 26, 2022 https://payrollheaven.com/define/accumulated-earnings-tax/.
Chicago Manual of Style (CMS):
Accumulated Earnings Tax. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/accumulated-earnings-tax/ (accessed: January 26, 2022).
American Psychological Association (APA):
Accumulated Earnings Tax. PayrollHeaven.com. Retrieved January 26, 2022
, from PayrollHeaven.com website: https://payrollheaven.com/define/accumulated-earnings-tax/

Definition Sources


Definitions for Accumulated Earnings Tax are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th October, 2021 | 0 Views.