The new 2% tax in Estonia even for not distributed profits (No more 0%?)

[Boxer]

From 1st January 2026 new 2% "Defence tax" will be imposed to all Estonian-registered entities, it will also apply to "non-disturbed" profits that previously were tax-free.

What are you thought, from that time Estonia will be less valuable than Cyprus? Or still better in some cases?

 

[JohnnyDoe]

Until the last Estonian, for Ukraine

 

[Martin Everson]

What are you thought, from that time Estonia will be less valuable than Cyprus? Or still better in some cases?

Close your Estonia company folks.

They claim it is a temporary tax until 2028...lol. Spain said something similar when it introduced wealth tax as a temporary measure and it still exists today under different name. You didn't mention also that companies will be forced to make an advance tax payment also. I am so glad I closed my Estonia company. An Estonia company seems to now be a bureaucratic nightmare to run and will no doubt drive up running costs.

--- quote start

Advance tax payments​

Companies will be required to make an advance defense tax payment to the Tax and Customs Board’s bank account by the 10th day of the third month of each quarter. It is calculated as follows:

• on one-fourth of the pre-tax profit earned in the previous financial year, if the deadline for making the advance tax payment is after 1 July;
• on one-fourth of the pre-tax profit earned in the financial year before the previous one if the deadline for making the advance tax payment is before 1 July, unless the annual report for the previous financial year has been submitted;
• on one-fourth of the pre-tax profit earned in the previous financial year if the deadline for making the advance tax payment is before 1 July and the annual report for the previous financial year has been submitted.

Thus, the advance tax payments must be paid by 10 September, 10 December, 10 March and 10 June.

--- quote end


I have added link below to GT so people can read the full details and how it will all work...

https://www.grantthornton.ee/en/ins...-profits-preparations-should-begin-this-year/

P.S If Estonia is not defending your resident country then why would you want to pay so called "defense taxes" to them? Seems a waste. I'm gonna bin my Estonia e-residency card or cancel it as Estonia is done for me.

 

[daniels27]

I'm gonna bin my Estonia e-residency card or cancel it as Estonia is done for me.

They can still be used for NGOs relatively cheap. I heard.

 

[JohnnyDoe]

Latvian banks: gone
Estonian companies: gone
Lithuanian EMIs: gone

RIP so called Baltic countries (or what was left of them)