Estonia

Corporate Income Tax in Estonia

Estonian corporate income tax for tax year 2026 under the Income Tax Act (tulumaksuseadus) consolidated text in force from 1 October 2026. Estonia taxes a company only when it distributes profit: 22% of the gross amount, charged as 22/78 of the net payment. Covers dividends, capital reductions, share buybacks and liquidation, deemed distributions (fringe benefits, gifts and donations, entertainment, non-business expenses, loans to shareholders), the participation exemption, the 2025 abolition of the 14/86 rate and the 7% withholding when 14/86-taxed dividends are passed on to individuals, the 18% quarterly advance tax for banks, exceeding borrowing costs, the cancelled 2026 rise to 24% and security tax, the monthly TSD return, interest and fines.