Estonia’s corporate tax system is renowned for its simplicity and benefits. Unlike many other countries, Estonian companies are only taxed on distributed profits, meaning businesses can reinvest their earnings without facing immediate corporate tax liabilities. This deferred taxation policy allows for greater capital efficiency, especially for startups and growing businesses​.

  • No Corporate Tax on Reinvested Profits: Businesses can reinvest their earnings into operations, development, or new ventures tax-free.
  • Double Tax Treaties: Estonia has signed over 60 double taxation treaties, allowing businesses to operate in multiple jurisdictions without being taxed twice​.