How to distribute profits from an 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 the 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 the shareholder's bank accounts with the description "profit distribution" or similar.

Payment of the corporate income tax

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

Tax returns

The company who is distributing profit must submit corresponding tax returns latest on the 10th of the 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).


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