Internal polarized electric field is found to be an effective and available strategy to separate photogenerated electron-hole pairs. By this method, the efficiency of photocatalytic reactions can be obviously enhanced. Here, the layered compound of BiOIO3 with spontaneous polarization was synthesized by a simple hydrothermal method. Taking another bismuth compound BiOI as a counterpart, which has a similar layered structure, the spontaneous polarization effects of BiOIO3 were analyzed and confirmed. The photocatalytic activity of BiOIO3 and BiOI were evaluated by the degradation of methyl orange. Methyl orange was almost completely photocatalytically decomposed by BiOIO3 and BiOI in 40 and 90 min, respectively. The separation and transfer behaviors of photogenerated electron-hole pairs were investigated by a series of photoelectrochemical characterizations. It is further proved the separation and transmission efficiency of BiOIO3 are higher than those of BiOI. According to the results of density of theory calculations, the internal polarized electric field in BiOIO3 is ascribed to the spatial asymmetry of the IO3 group, which is estimated to ∼1.5 × 1010 V/m. Under the action of this internal polarized electric field, the photogenerated electrons and holes would transfer along opposite directions, i.e., photogenerated electrons and holes respectively gather at the Bi/I side and O side. Additionally, superoxide radicals (•O2-) and holes (h+) are produced during the degradation process, which are responsible for the high visible-light photocatalytic activity. Finally, the cyclic degradation test proves that its photocatalytic performance has long-term stability. Therefore, BiOIO3 polar material can be used as one of the alternative materials for efficient photocatalytic reaction.