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

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Accumulated Earnings Tax. Payroll & Accounting Heaven Ltd.
January 26, 2022
Chicago Manual of Style (CMS):
Accumulated Earnings Tax. Payroll & Accounting Heaven Ltd. (accessed: January 26, 2022).
American Psychological Association (APA):
Accumulated Earnings Tax. Retrieved January 26, 2022
, from website:

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.