What are the taxes on dividends (operating outside Estonia)?

Last updated: December 20, 2018

If you receive dividends from your company, the corporate income tax is paid in Estonia. The rate is 20%, calculated as 20/80 from the net payment you receive.

The corporate income tax on the distributed profit is paid in Estonia based on the actual dividend payments, not the "decided" payments. For example, if the shareholders decide to distribute €5 000 in March, but pay out only €1 000 in April, only €1 000 is reported to the Estonian Tax authorities, and the corporate income tax of 20/80 (€250 in this case) has to be paid to the Estonian Tax authorities in May (the next month).

No personal income tax is added in Estonia. However, the personal income tax on the dividends received is likely to be declared and paid in the country where you are a tax resident. Please contact the local authorities in the country to learn about the income tax rules and the procedures for declaring and making the payments properly. Unfortunately we can't assist you with this yet.

Please note that the tax treatment of regular dividends (paid out each year) may differ.

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