IMPROPERLY ACCUMULATED EARNINGS TAX (IAET)

Revenue Regulations No. 2-2001 was issued by the bureau to determine the Improperly
Accumulated Earnings Tax on corporations.
Improperly Accumulated Earnings Tax (IAET) is imposed for each taxable year, a tax equal to
10% of the improperly accumulated taxable income of corporations.
The following corporations shall not apply of the Improperly Accumulated Earnings (IAET):
1. Banks and other non-bank financial intermediaries;
2. Insurance companies;
3. Publicly-held corporations;
4. Taxable partnerships;
5. General professional partnerships;
6. Non-taxable joint ventures;
7. Enterprises duly registered with the Philippine Economic Zone Authority (PEZA) under R. A.
#7916, and enterprises registered pursuant to the Bases Conversion and Development Act of
1992 under RA# 7227.