0%     Corporate income tax (undistributed profit) 

22%   Corporate income tax (distributed profit) 

20%   Personal income tax 

22%   VAT tax rate 

General requirements

If the company sales in EU exceeds 40 000 EUR, then the company must apply for a VAT ID.In case you want to apply for a VAT ID before you have started a business or the 40 000 EUR limit is exceeded, it is required to explain the planned business activities.It is important to know that VAT ID is not always granted automatically and further investigation might be done by the tax authorities.Authorities usually make the decision within 1 week.

Tax returns become compulsory

Once your company has received an Estonian VAT ID, you are required to submit monthly tax returns, even if your company does not have any activities at all.

Monthly tax reports are due:

• Social tax return - latest on the 10th day of the next month
• VAT return - latest on the 20th day of the next month

In case you fail to submit the tax returns on time, your company gets a penalty from the tax authorities and you may lose the VAT ID.