---
name: ee-corporate-income-tax
description: "Source-cited draft: corporate income tax for Estonia (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/ee-corporate-income-tax"
  jurisdiction: "EE"
  tax_year: "2025"
  last_updated: "2026-07-13"
  review_status: "pending_review"
---

# Estonia Corporate Income Tax

## Corporate income tax base and rates

Estonia's corporate income tax is levied only on distributed (and deemed-distributed) profits, not on accrued earnings. Retained and reinvested profits are taxed at 0%, making the timing of distribution the key tax event.

- **Tax on retained / reinvested profits** — 0% percent  _(Income Tax Act (Tulumaksuseadus) — https://taxsummaries.pwc.com/estonia/corporate/taxes-on-corporate-income)_
- **Tax on distributed profits** — 22% of the gross amount, levied as 22/78 of the net distribution percent  _(Income Tax Act (Tulumaksuseadus) — https://taxsummaries.pwc.com/estonia/corporate/taxes-on-corporate-income)_
- **Distribution tax formula** — CIT = net distribution × 22/78 (e.g. 78 EUR dividend → 22 EUR CIT)  _(Income Tax Act (Tulumaksuseadus) — https://taxsummaries.pwc.com/estonia/corporate/taxes-on-corporate-income)_
- **Reduced 14% rate on regular dividends** — Abolished from 1 January 2025 (previously 14/86 on regularly distributed profits)  _(Income Tax Act (Tulumaksuseadus) — https://www.ey.com/en_ee/insights/tax/significant-tax-changes-in-estonia-in-2025-2026)_
- **Tax base** — Profit distributions, fringe benefits, gifts/donations, non-business expenses, and other deemed distributions — not annual accounting profit  _(Income Tax Act (Tulumaksuseadus) — https://taxsummaries.pwc.com/estonia/corporate/income-determination)_
- **Withholding tax on dividends to non-residents** — 0% (no WHT; the 22% CIT is borne at company level on distribution) percent  _(Income Tax Act (Tulumaksuseadus) — https://taxsummaries.pwc.com/estonia/corporate/withholding-taxes)_
- **Withholding tax on interest to non-residents** — 0% (generally no WHT on ordinary interest payments) percent  _(Income Tax Act (Tulumaksuseadus) — https://taxsummaries.pwc.com/estonia/corporate/withholding-taxes)_
- **Withholding tax on royalties to non-residents** — 10% under domestic law (often reduced under double tax treaties) percent  _(Income Tax Act (Tulumaksuseadus) — https://taxsummaries.pwc.com/estonia/corporate/withholding-taxes)_
- **Withholding tax on certain services performed in Estonia** — 10% on payments to non-residents for services rendered in Estonia (treaty relief may apply) percent ((approx — confirm))  _(Income Tax Act (Tulumaksuseadus) — https://taxsummaries.pwc.com/estonia/corporate/withholding-taxes)_
- **CIT return and payment deadline** — Monthly via Form TSD by the 10th of the following month (tax due only when a distribution is made)  _(Income Tax Act (Tulumaksuseadus); Form TSD — https://taxsummaries.pwc.com/estonia/corporate/tax-administration)_
- **Advance income tax for credit institutions** — Banks pay quarterly advance income tax on profit (rate set in law; confirm current percentage) ((approx — confirm))  _(Income Tax Act (Tulumaksuseadus) — https://taxsummaries.pwc.com/estonia/corporate/taxes-on-corporate-income)_

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> **General reference only.** This document does not constitute tax, legal, or
> financial advice. Verify figures against the cited primary sources or with a
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## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-07-13. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `ee-corporate-income-tax` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/ee-corporate-income-tax. If neither is available, confirm every figure against the official source pages cited above before relying on it.