Business, Legal & Accounting Glossary
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.
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.
Accumulated Profits Tax
Retained Earnings
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This glossary post was last updated: 9th October, 2021 | 0 Views.