Source-cited draft: corporate income tax for Estonia (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.
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Tax on retained / reinvested profits
0%Income Tax Act (Tulumaksuseadus) — https://taxsummaries.pwc.com/estonia/corporate/taxes-on-corporate-income
Tax on distributed profits
22% of the gross amount, levied as 22/78 of the net distributionIncome Tax Act (Tulumaksuseadus) — https://taxsummaries.pwc.com/estonia/corporate/taxes-on-corporate-income
Distribution tax formula
CIT = net distribution × 22/78 (e.g. 78 EUR dividend → 22 EUR CIT)Income Tax Act (Tulumaksuseadus) — https://taxsummaries.pwc.com/estonia/corporate/taxes-on-corporate-income
Reduced 14% rate on regular dividends
Abolished from 1 January 2025 (previously 14/86 on regularly distributed profits)Income Tax Act (Tulumaksuseadus) — https://www.ey.com/en_ee/insights/tax/significant-tax-changes-in-estonia-in-2025-2026
Tax base
Profit distributions, fringe benefits, gifts/donations, non-business expenses, and other deemed distributions — not annual accounting profitIncome Tax Act (Tulumaksuseadus) — https://taxsummaries.pwc.com/estonia/corporate/income-determination
Withholding tax on dividends to non-residents
0% (no WHT; the 22% CIT is borne at company level on distribution)Income Tax Act (Tulumaksuseadus) — https://taxsummaries.pwc.com/estonia/corporate/withholding-taxes
Withholding tax on interest to non-residents
0% (generally no WHT on ordinary interest payments)Income Tax Act (Tulumaksuseadus) — https://taxsummaries.pwc.com/estonia/corporate/withholding-taxes
Withholding tax on royalties to non-residents
10% under domestic law (often reduced under double tax treaties)Income Tax Act (Tulumaksuseadus) — https://taxsummaries.pwc.com/estonia/corporate/withholding-taxes
Withholding tax on certain services performed in Estonia
10% on payments to non-residents for services rendered in Estonia (treaty relief may apply)Income Tax Act (Tulumaksuseadus) — https://taxsummaries.pwc.com/estonia/corporate/withholding-taxes
CIT return and payment deadline
Monthly via Form TSD by the 10th of the following month (tax due only when a distribution is made)Income Tax Act (Tulumaksuseadus); Form TSD — https://taxsummaries.pwc.com/estonia/corporate/tax-administration
Advance income tax for credit institutions
Banks pay quarterly advance income tax on profit (rate set in law; confirm current percentage)Income Tax Act (Tulumaksuseadus) — https://taxsummaries.pwc.com/estonia/corporate/taxes-on-corporate-income
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
Estonia's corporate income tax is levied only on distributed (and deemed-distributed) profits, not on accrued earnings. Retained and reinvested profits are taxed at 0%, making the timing of distribution the key tax event.
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Other Estonia computations in the OpenAccountants Tax Library.