Corporate Tax Estonia 2026
Estonian Tax System: Summary
The Estonian tax system is consistently one of the most competitive in the world.
Corporate income tax is payable when profits are distributed and 0% at all other times. Corporations are incentivised to re-invest and determine when their tax arises based on realised profits, not pre-payment based on estimates.
Corporate income tax is calculated on a 22/78 basis, about 28% effective, which is competitive by European standards.
As a member of the EU and Eurozone, an Estonian company can trade freely within a market of 450m people and EUR 18tn output, while benefitting from the Estonian tax system.
Corporate Tax Estonia: Rates
| Corporate Income Tax | 22/78 (28%) on distributed profit, 0% if undistributed. |
| Value Added Tax | 24% standard rate; some reduced rates may apply. |
| Social Tax | 33% of the employee’s gross salary payable by the employer. |
| Unemployment Tax | 0.8% of the employee’s gross salary payable by the employer. |
| Bank Levy | 18% for credit institutions. |
| Asset Tax | May apply to real estate and motor vehicles. |
Additional considerations in Estonian tax system: entity type, size, fringe benefits, deductible expenses, distribution rules, and double taxation.
Corporate Tax Estonia: Compliance
You can form an Estonian company anywhere in the world using eResidency. Ongoing administration is easy, the Estonian tax system has a flat structure which reduces errors, and online filings save time and money.
Every Estonian company must file annual accounts.
Monthly tax reporting is required if you are VAT liable (EUR 40k intra-Estonia threshold), if your Estonian company has employees, or made taxable distributions.
Corporate Tax Estonia: TrustBooks Services
The Estonian tax system is simple, but must be applied to your specific circumstances. TrustBooks provides professional taxation services to assist with calculations, reporting and compliance. If you are a corporation or investor, contact us for a free consultation about the Estonian tax system.
