Direct taxes - Corporate Income Tax

    Generic part

    Corporate income tax
    Ettevõtte tulumaks
    EE - Estonia
    EUR
    Date
    Year
    2000/01/01
    2019/01/01
    2019/05/14 14:50:27

    Contact information

    Administration

    Ministry of Finance

    Service

    Fiscal Policy Department

    Website

    https://www.rahandusministeerium.ee/en

    E-mail

    Telephone

    +3726113221

    Who sets

    The tax rate is set by

    • Central authority
    • Regional authority
    • Local authority
    • Social security

    The tax base is set by

    • Central authority
    • Regional authority
    • Local authority
    • Social security

    The reliefs are set by

    • Central authority
    • Regional authority
    • Local authority
    • Social security

    Beneficiary

    • Central authority
    • Regional authority
    • Local authority
    • Social security
    • Others

    Geographical Scope

    EE - Estonia
    No Yes

    Taxpayers

    Which entities are liable for CIT?

    • Legal persons
    • Organizational units having no legal personality
    • Tax capital groups
    • Associations
    • Foundations
    • Companies having their seat or management office in other countries, provided that in their country they are treated as legal persons and are subject to tax on income
    • Public corporations
    • Others

    Which entities are exempt from CIT?

    Domestic-source income of non-resident entities is

    Taxed
    Not Taxed

    Tax object and basis of assessment

    As general rule, taxable income under corporate income tax includes also

    • Interest
    • Royalties
    • Dividends
    • Capital gains
    • Income from immovable property
    • Income from movable property not listed above
    • Income from agriculture

    Income considered

    Domestic income
    Worldwide income (subject to double-tax relief)

    Deductions, allowances, credits, exemptions

    Valuation of inventory

    • First-in first-out (FIFO)
    • Last-in first-out (LIFO)
    • Average cost
    • Specific identification

    Depreciation rules

    Buildings

    Depreciable
    Not-depreciable
    • Straight-line method
    • Declining balance
    • Production method
    • Combination of above
    • Other

    Other fixed immovable assets (e.g. machinery)

    Depreciable
    Not-depreciable
    • Straight-line method
    • Declining balance
    • Production method
    • Combination of above
    • Other

    Movable (tangible) assets (e.g. cars, furniture, work equipment)

    Depreciable
    Not-depreciable
    • Straight-line method
    • Declining balance
    • Production method
    • Combination of above
    • Other

    Intangible assets (e.g. patents)

    Depreciable
    Not-depreciable
    • Straight-line method
    • Declining balance
    • Production method
    • Combination of above
    • Other

    Land (if any)

    Depreciable
    Not-depreciable
    • Straight-line method
    • Declining balance
    • Production method
    • Combination of above
    • Other

    Are there limits to interest deductions (other than thin capital rules)?

    No Yes
    Corporate income tax is levied on exceeding borrowing costs which exceed EUR 3 000 000, 30% of the taxpayer’s EBITDA and the losses of the taxpayer. CIT is not levied on exceeding borrowing costs in case of a standalone entity, financial undertakings and loans used to fund a long-term public infrastructure, where the project operator, borrowing costs, assets and income are all in the EU.

    Is there an Allowance for Corporate Equity?

    No Yes

    Exemptions from taxable income

    No Yes
    • Income from participations (dividends)
    • Patents income (e.g. patent boxes)
    • Other, please describe

    Expenses that are generally not deductible:

    Expenses that are not related to business

    Losses

    Loss carry-forward exists?

    No Yes
    • Indefinite

    Loss carry-backward exists?

    No Yes
    • Indefinite

    Tax credits available?

    No Yes
    • For research and development investments
    • For training
    • Other, please describe:

    Rate(s) Structure

    20 %
    20 %

    Special tax rate for SMEs

    No Yes

    Measures against profit shifting

    Do Thin Capitalization (TC) rules exist?

    No Yes
    • Explicit TC law
    • Part of CIT law
    • Arm’s length
    • Ratio
    :
    Internal
    Internal and external

    TC depends on shareholding?

    No Yes
    Direct
    Indirect

    Automatic remedy

    No Yes
    • Non-deductibility of interest
    • Reclassification as dividend
    All companies
    Foreign companies
    Non-EU companies

    Transfer pricing rules exists?

    No Yes
    No Yes
    • Fee
    • Tax base increase

    Special features

    Is group taxation available?

    No Yes

    Is there a specific anti-avoidance provision in the legislation?

    No Yes

    International aspects

     
    Treaty countries
    Non-treaty countries
    Repatriated profits are taxed according to the following system
    • Exemption system
    • Tax credit
    • Deduction
    • Exemption system
    • Tax credit
    • Deduction
    Interest received is taxed
    No Yes
    No Yes
    Tax rate on interest received
    20 %
    20 %
    Outgoing dividends withholding tax
    0 %
    0 %
    Outgoing royalty payments withholding tax
    10 %
    10 %
    Outgoing interest payments withholding tax
    0 %
    0 %
    Foreign losses (of either subsidiaries or permanent establishments) can be set-off
    No Yes
    No Yes
    If yes :
    Minimum direct or indirect shareholding to qualify loss-offset (if applicable)
    Loss carry-forward exists?
    No Yes
    No Yes
    If yes :
    Time limit
    • Indefinite
    • Indefinite
    Size limit
    Loss carry-backward exists?
    No Yes
    No Yes
    If yes :
    Time limit
    • Indefinite
    • Indefinite
    Size limit
    Controlled foreign company (CFC-) rules exist?
    No Yes
    No Yes
    If yes :
    Time limit:
    • Indefinite
    • Indefinite
    Size limit
    Threshold for capital or voting power held directly or indirectly by resident in non-resident company:
    50 %
    50 %
    CFC-rules apply if foreign tax rate is lower than:
    CFC-rules apply for passive income only?
    No Yes
    No Yes

    Tax due date

    When has the tax return to be filed

    • 3 months after closing of the tax period
    • 6 months after closing of the tax period
    • Later than 6 months after closing of the tax period
    • Date set by the Authority
    • Other
    • Extensions of the deadline are possible

    Advance tax payments due?

    No Yes
    • Monthly
    • Quarterly
    • Bi-annual
    • Annual
    • Other

    Tax collector

    General comments

    Economic function

    • Consumption
    • Labour Employed (paid by employers and employees)
    • Labour Non-employed
    • Capital income: corporations
    • Capital income: income of households
    • Capital income: income of self-employed
    • Capital stocks

    Environmental taxes

    • Energy
    • Transport
    • Pollution/resources

    Tax revenue

    d51o
    Year Annual tax revenue (in millions) % of GDP % of total tax revenue -
    2017
    365.55
    1.548 %
    4.7243 %
    2016
    369.14
    1.7025 %
    5.0764 %
    2015
    424.29
    2.0545 %
    6.1815 %
    2014
    344.72
    1.7183 %
    5.3552 %
    2013
    326.6
    1.7251 %
    5.454 %
    2012
    252.42
    1.4074 %
    4.4444 %
    2011
    201.05
    1.2062 %
    3.8278 %
    2010
    193.76
    1.3166 %
    3.9595 %
    2009
    256.31
    1.8119 %
    5.1891 %
    2008
    266.26
    1.612 %
    5.1291 %
    2007
    261
    1.6065 %
    5.1361 %
    2006
    199.62
    1.4763 %
    4.8334 %
    2005
    159.55
    1.4167 %
    4.727 %
    2004
    161.19
    1.6604 %
    5.3207 %
    2003
    137.82
    1.5825 %
    5.1219 %
    2002
    86.16
    1.1083 %
    3.555 %
    2001
    47.82
    0.6855 %
    2.2572 %
    2000
    54.61
    0.885 %
    2.8463 %
    1999
    104.5
    1.9428 %
    5.9707 %
    1998
    122.33
    2.4385 %
    7.1798 %
    1997
    78.51
    1.7541 %
    5.1384 %
    1996
    56.95
    1.5233 %
    4.4663 %
    1995
    67.09
    2.3116 %
    6.4152 %

    Footnotes