How is income and dividend taxation of the company executed?

In 2025, there is no corporate income tax in Estonia, meaning the tax rate is 0%. The moment of corporate income taxation is shifted until the distribution of profits, for example, in the form of dividends.

However, distributed dividends are subject to corporate income tax. The tax rate is 22/78 (28.20%). The tax must be paid in the month following the dividend payment.

Example 1 Dividend Payment

In January 2025, the company paid dividends amounting to €10,000.
Tax on dividends: €2,820.
Tax payment deadline: February 10, 2025.

Example 2 No Dividend Payment

The company ended the financial year with a profit of €100,000.
No dividends were paid.
No tax liability arises.

Learn more about dividend taxation from January 1, 2025, HERE.

New Security Tax (2026–2028)

From 2026 to 2028, a security tax of 2% will be introduced in Estonia.
This tax will apply to pre-tax profits.