How to distribute profits from Estonian company


Share capital must be paid

According to the Commercial Code it is not allowed to distribute profits in case the registered company's share capital is not paid in (company is created without contribution of share capital) and corresponding registration process is done in Commercial register.

Profit distribution

In case conditions mentioned above are fulfilled you can simply pay maximum 80% of the last fiscal year's profit to she shareholders's bank accounts with the description "profit distribution" or similar.

Payment of the corporate income tax

In Estonia payment of dividends is not taxed, but on the moment of profit distribution company must pay 20% corporate income tax, which must be done latest 10th of next month after profit distribution.

Tax returns

The company who is distributing profit must submit corresponding tax returns latest 10th of next month after profit distribution. It is better if your accountant (KRM Advisor) will take care of it as for practical reason it is considered too complicated to do it without assistance.

Tax payment details

Banking details
 

Reference number
must be entered into payment order. By entering registration number to the field you receive reference number for payment

Payment description

Amount

https://www.emta.ee/eng/business-client/taxation-payment-taxes/requisites-payment-taxes

http://apps.emta.ee/e-service/doc/a0004.xsql



"corporate income tax"

if you distribute 8000 EUR to shareholders you must pay 2000 EUR corporate income tax, which means it is 20% from gross amount or 25% from net amount (what you paid out as profit distribution).