Estonia: Proposed 2% corporate income tax rate for resident companies and permanent establishments

A temporary corporate tax rate of 2%

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November 20, 2024

The Ministry of Finance of Estonia in late September 2024 published legislation that includes a temporary corporate tax rate of 2% imposed on Estonian tax resident companies and permanent establishments in Estonia of non-resident companies.

Based on the current draft, the law is intended to come into effect from January 1, 2026, and would be in effect until December 31, 2028.

The bill is currently subject to the second (out of three) readings of the Estonian Parliament.

Read a November 2024 report prepared by KPMG's EU Tax Centre

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