Estonia and four EU states urged fairer taxation and lower administrative burdens, seeking a six-year extension on the minimum tax directive.
Estonia, along with Latvia, Lithuania, Malta, and Slovakia, submitted a joint statement to EU finance ministers on Friday, 13 December 2025, calling for fairer taxation of international companies and a reduction in administrative burdens.
Finance Minister Jürgen Ligi said Estonia’s submission calls for a review of the EU minimum tax directive, requesting a six-year extension for its implementation from 2030. In response, the European Commission issued a statement promising to carry out an analysis of the issue.
“For us, global taxation is unlikely to generate revenue, but it does create administrative costs that are not suitable for our tax authorities. We have encountered a willingness to take this into account,” Ligi said.
The five countries stressed that EU tax initiatives should not increase system complexity. The OECD-led minimum tax package is a particular concern, as it could significantly raise administrative burdens for both companies and tax authorities. Estonia aims for simple and stable rules that ensure fair taxation while supporting competitiveness.
Under the current EU minimum tax directive, Estonia and other small member states benefit from an exemption allowing them to postpone the application of the minimum tax until 2030. The five countries have requested that this exemption be extended by at least six years. The five countries stressed that the directive should only be applied once the rules are fully clear and stable.
Ministers also discussed further integration of capital markets, which could improve small countries’ access to investment and boost competition. Estonia emphasised that reforms must deliver tangible benefits, including simplification, lower costs, reduced duplication, and more effective supervision.
In the coming days, EU finance ministers will continue discussions on funding Ukraine’s defence and reconstruction, with national leaders expected to make decisions next week. Informal talks have focused on a proposed “reparations loan” for Ukraine, supported by frozen assets of the Russian central bank.
