Tax customs & excise /

Estonian CIT: tax base and rates

Generally, in Estonian CIT is taxed: the amount of net profit in the part in which it is intended

  1. to be paid to shareholders or
  2. to cover losses from the period preceding the entry into Estonian CIT

What is more, in Estonian CIT is taxable the income from covered business transactions, not taxed net profit in the end of 4-years period of usage of Estonian CIT. Some other special activities are taxed as well. The rates are 15% for small taxpayers and 25%for non-taxpayers. Additionally, there are reductions in the above-mentioned rates where the company makes large investments. Income tax from partners or shareholders on account of dividend payment is also reduced, and the scale of the reduction also depends on the size of investments carried out by the company; the more the company invests, the lower the tax on dividends for shareholders.

Rates are 15% for small taxpayers, 25% for other taxpayers. Additionally, the are predicted reductions when company makes huge investments. Payment of dividends is taxed by reduced rates as well. The level of reduction depends of level of investments; higher investments are in Compeny, higher reduction of taxation of dividends are predicted.

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