Estonia: Parliament approves law to increase income tax rates
June 22, 2023
On 19 June 2023, the Estonian Parliament approved Income Tax Act and Defense Service Act Amendment Act 148 SE which increases both the personal income tax and corporate income tax rates by 2 percentage points to reach 22% from 20%. Also, the income tax rate for credit institutions will be raised to 18%, up from the previous rate of 14%. The increased rate will be effective from 1 January 2025.
On 10 April 2024, Estonia’s parliament passed the Act supplementing the Tax Information Exchange Act, the Taxation Act, and the Income Tax Act (379 SE). This law outlines the requirements for the implementation of public CbC reporting in
On 12 February 2024, a draft bill was introduced to the Estonian Parliament to incorporate the EU Public Country-by-Country (CbC) Reporting Directive into Estonian legislation. The parliament acknowledged there are a limited number of companies that
On 8 February 2024, Estonia's Ministry of Finance, in a release announced that it passed the draft legislation to postpone the implementation of the Pillar 2 global minimum tax until the year 2030. Until that time, the companies that fall within the
On October 27, 2023, Estonia published a draft legislation to incorporate OECD Pillar 2 rules into its domestic law, aligning with the EU Minimum Tax Directive. The draft does not incorporate provisions regarding income inclusion rule (IIR) and
On 20 October 2022, the Estonian Government approved Law regarding new reporting obligations Council Directive (EU) 2021/514 for digital platform operators (DAC7) into domestic law. This directive has been published on 25 March 2021, entered into
On 1 June 2022, the Organization for Economic Cooperation and Development (OECD) announced that the Republic of Estonia notified the confirmation of the completion of its internal procedures for the entry into effect of the provisions of the
