Estonia: Domestic Corporate Taxation
This page was last updated on 13 September 2019.
For resident companies, tax is collected by means of withholding tax at a rate of 20%. Withholding tax on dividends was abolished in 2009. The rate for royalties and fees for entertainers and sports people was reduced to 10% in 2009. Payments to non-residents for services provided within Estonia are also subject to the 10% rate. Withheld taxes must be reported and paid by the 10th of the month following the withholding of the tax. Withholding taxes are typically reduced where double taxation treaties apply.
Non-residents must pay tax on profits from a commercial lease relating to property located in Estonia. Income tax is imposed on royalties from the use of intellectual rights. Royalties paid by a resident of Estonia are not liable to withholding tax if the owner is a company incorporated within the EU. This exemption requires that the owner should have a minimum holding of 25% of the capital of the resident.