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If you receive dividends from your company, the corporate income tax is paid in Estonia. The rate is 22% (20% until Dec 31, 2024), calculated as 22/78 (20/80 until Dec 31, 2024) from the net payment you receive. We presume that you personally do not use the basic tax exemption related to your salary on a regular basis. The tax authorities calculate the basic tax exemption from your total income when you submit a personal income tax return.

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 22/78 (€282.05 in this case) has to be paid to the Estonian tax authorities in May (the next month).