There is no corporate tax on retained profits in Estonia. Corporate tax is due only on distributed or deemed distributed profits, including regular distributions, non-business related expenses, fringe benefits or transfer pricing adjustments. Distributed or deemed distributed profits are subject to tax at the flat rate of 20% (20/80 on the net amount of the profit distribution). For example, if a company has profits of EUR 100 available for distribution, the company can distribute dividends of EUR 80, on which it has to pay a corporate income tax of EUR 20.

Effective 1 January 2018, a reduced rate of 14% (14/86) applies on distributions not exceeding an amount equivalent to the average distribution made in the previous three years, with the excess subject to the standard 20% (20/80) rate. The first year to be taken into account is 2018.

Effective 1 January 2025, the standard tax rate is scheduled to increase from 20% to 22% (22/78 on the net amount of the profit distribution).

There is no corporate tax on retained profits in Estonia. Corporate tax is due only on distributed or deemed distributed profits, including regular distributions, non-business related expenses, fringe benefits or transfer pricing adjustments. Distributed or deemed distributed profits are subject to tax at the flat rate of 20% (20/80 on the net amount of the profit distribution). For example, if a company has profits of EUR 100 available for distribution, the company can distribute dividends of EUR 80, on which it has to pay a corporate income tax of EUR 20.

Effective 1 January 2018, a reduced rate of 14% (14/86) applies on distributions not exceeding an amount equivalent to the average distribution made in the previous three years, with the excess subject to the standard 20% (20/80) rate. The first year to be taken into account is 2018.

Effective 1 January 2025, the standard tax rate is scheduled to increase from 20% to 22% (22/78 on the net amount of the profit distribution).

There is no corporate tax on retained profits in Estonia. Corporate tax is due only on distributed or deemed distributed profits, including regular distributions, non-business related expenses, fringe benefits or transfer pricing adjustments. Distributed or deemed distributed profits are subject to tax at the flat rate of 20% (20/80 on the net amount of the profit distribution). For example, if a company has profits of EUR 100 available for distribution, the company can distribute dividends of EUR 80, on which it has to pay a corporate income tax of EUR 20.

Effective 1 January 2018, a reduced rate of 14% (14/86) applies on distributions not exceeding an amount equivalent to the average distribution made in the previous three years, with the excess subject to the standard 20% (20/80) rate. The first year to be taken into account is 2018.

Effective 1 January 2025, the standard tax rate is scheduled to increase from 20% to 22% (22/78 on the net amount of the profit distribution).

There is no corporate tax on retained profits in Estonia. Corporate tax is due only on distributed or deemed distributed profits, including regular distributions, non-business related expenses, fringe benefits or transfer pricing adjustments. Distributed or deemed distributed profits are subject to tax at the flat rate of 20% (20/80 on the net amount of the profit distribution). For example, if a company has profits of EUR 100 available for distribution, the company can distribute dividends of EUR 80, on which it has to pay a corporate income tax of EUR 20.

Effective 1 January 2018, a reduced rate of 14% (14/86) applies on distributions not exceeding an amount equivalent to the average distribution made in the previous three years, with the excess subject to the standard 20% (20/80) rate. The first year to be taken into account is 2018.

Effective 1 January 2025, the standard tax rate is scheduled to increase from 20% to 22% (22/78 on the net amount of the profit distribution).