This article provides an up-to-date overview of corporate tax for companies operating in Estonia (EE) for 2025. We present the latest official figures and highlight important upcoming changes affecting companies both local and international.
Key Features of Estonia’s 2025 Corporate Tax Regime
Estonia continues to use a distinct corporate taxation system compared to most other jurisdictions in the EU. Below you’ll find the main data points for corporate tax application in 2025:
| Tax Type | Tax Rate (%) | Currency (EUR) | Assessment Basis | Upcoming Change |
|---|---|---|---|---|
| Flat Corporate Income Tax | 22% | € | Corporate | From 1 January 2026, rate increases to 24% |
Current Corporate Tax Rate in Estonia (2025)
For the tax year 2025, companies in Estonia are subject to a flat corporate income tax rate of 22% on taxable profits. This rate applies equally to both resident and non-resident legal entities carrying on business activity in Estonia. The rate is set in euro (€), Estonia’s official currency since 2011.
No Tax Brackets, Simple Application
Estonia’s system uses a single, flat tax rate—there are no progressive brackets. This minimizes complexity and simplifies both planning and compliance for companies of all sizes.
Announced Rate Increase for 2026
Estonian authorities have confirmed a scheduled rise in the corporate income tax rate. Starting 1 January 2026, the rate will increase from 22% to 24%. Companies assessing future liabilities or considering long-term planning should factor this change into their projections and tax strategies.
| Year | Corporate Tax Rate (%) |
|---|---|
| 2025 | 22% |
| 2026 (from 1 January) | 24% |
Surtaxes and Additional Details
No standard surtaxes or special corporate tax add-ons currently apply for 2025, aside from the previously noted rate increase scheduled for 2026. Other surcharges, social taxes, or payroll taxes fall outside the corporate income tax regime and are not reflected in the above figures.
The Estonian system does not impose minimum or maximum holding period requirements affecting the corporate tax rate. If such periods are important for your business, current data indicates no restrictions or reliefs based on holding period for 2025.
Estonia Corporate Tax at a Glance
| Parameter | Value |
|---|---|
| Currency | € (Euro, EUR) |
| Tax Rate (2025) | 22% |
| Type | Flat |
| Taxable Unit | Corporate entities |
| Brackets | None (flat rate applies) |
| Surtaxes for 2025 | None (rate increases in 2026) |
| Holding Period Requirement | None |
Pro Tips for Managing Corporate Tax in Estonia
- Plan for Future Rate Changes: With the increase from 22% to 24% coming in 2026, align your earnings distribution and reinvestment decisions accordingly in 2025.
- Leverage Simplicity: The flat rate system and lack of brackets ease projection and calculation complexity; use this transparency for efficient budgeting and forecasting.
- Monitor Official Announcements: Always refer to the Estonian Tax and Customs Board for any amendments or clarifications regarding tax rates and compliance obligations.
- Understand the Assessment Basis: The tax is based strictly on corporate profits—be diligent in profit calculation and documentation, as this is central to accurate filings.
Further Resources
Estonia’s flat corporate tax system continues to offer a streamlined, predictable fiscal environment in 2025, with a single rate applying to all companies and minimal administrative overhead. The upcoming increase to 24% in 2026 is a key change to watch, but for 2025, the 22% rate keeps planning straightforward. Companies should pay particular attention to official sources and adjust their planning as new legislation takes effect.