Europe · Tax guide
Estonia
Estonia taxes company profits only when they are distributed — at 22/78 of the net distribution (22% of the gross) — so reinvested profits carry no corporate tax. VAT is 24%, and employers pay a social tax of 33%. Taxes are administered by the Estonian Tax and Customs Board.
At a glance
- Corporate income tax
- 22/78 of the net distribution (22% of the gross)
- VAT
- 24%
- Employer social tax
- 33%
- Withholding on royalties
- 10%
- Global minimum tax
- 15%
Only on distributed profits
Registration above €40,000
On salaries
Paid to non-residents
Groups with revenue of €750 million or more
Tax on distributed profits
Estonia does not tax retained profits. Companies pay corporate income tax only when they distribute profits — dividends, hidden profit distributions or non-business expenses — at 22/78 of the net distribution (22% of the gross). Returns are filed monthly by the 10th.
VAT
VAT is 24%, with reduced rates for items such as accommodation, books and medicines. Registration is required once turnover exceeds €40,000 a year; returns are monthly.
Employers
Employers withhold income tax and pay social tax of 33% of gross salary, plus unemployment insurance, reported monthly on form TSD.
Payments abroad and the global minimum tax
Royalties paid to non-residents carry 10% withholding; dividends to foreign companies generally carry none. Related-party transactions must be at arm's length. Groups with revenue of €750 million or more are subject to the global minimum tax at 15%.
Key dates
- By the 10th of each monthTSD return (payroll and distributed profits)
- By the 20th of each monthVAT return
Figures and sources
7 figures- Corporate income tax on distributed profits22/78 of the net distribution (22% of the gross)Checked against the official source
- VAT standard rate (since July 2025)24%Under professional review
- Social tax paid by the employer33%Under professional review
- Annual turnover above which VAT registration is required€40,000Under professional review
- Withholding on royalties paid to non-residents10%Under professional review
- Global minimum tax rate15%Under professional review
- Group revenue for the global minimum tax€750 millionUnder professional review
Indicative only. This assessment is a high-level overview of tax obligations in Estonia based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult an Estonian tax adviser before making compliance decisions.