Estonia

Corporate - Significant developments

Last reviewed - 25 February 2026

Estonia is regarded as offering a relatively favourable income tax regime, as all undistributed corporate profits are tax exempt. Estonia levies a corporate income tax (CIT) only on profits that are distributed as dividends, share buy-backs, capital reductions, liquidation proceeds, or deemed profit distributions. Distributed profits are generally subject to 22% corporate tax (22/78 on the net amount of the profit distribution).