CIT

Digitalisation is affecting more and more areas of our lives. It is no different in the tax sphere. TPR forms for transfer pricing reporting, because a few words about it today, are, as of those for 2022, filed as online forms. Nevertheless, despite the obvious benefits of digitisation, taxpayers often encounter various problems, particularly technical ones, when filing the indicated form in the new form.

Transfer pricing is one of the most difficult areas of tax law. The regulation of transactions between related parties aims to ensure that the prices determined reflect market conditions and do not lead to tax avoidance. In this context, the transfer pricing adjustment becomes an important tool to align tax settlements with actual economic conditions. It is worthwhile to understand what exactly a transfer pricing adjustment is, under what circumstances it can be applied and what risks are associated with it.

The decision to sell a business is one of the most important steps for an entrepreneur. This process involves not only legal and business aspects, but also tax obligations. It is advisable to find out in advance which taxes apply to the sale of a business in order to prepare well for the transaction and avoid unpleasant surprises. In this article, we explain which taxes apply to the sale of a business and what the amount depends on.

The Estonian CIT, or flat rate on corporate income, is a popular tax arrangement that defers taxation of company profits until they are distributed. However, to take advantage of this favorable system, entrepreneurs must meet several conditions. One of the most important is the employment requirement. In this article we explain what this condition is and how to meet it.

In today’s global business environment, transactions between related parties are the order of the day. As a result, tax authorities are increasingly focusing on controlling transfer pricing to prevent erosion of the tax base and shifting of profits to lower-tax jurisdictions. One of the key responsibilities of companies is to prepare appropriate transfer pricing documentation within certain deadlines. In this article, we will outline the most important deadlines related to transfer pricing documentation and tips on how to prepare for them.

Estonian CIT, also known as a lump sum on corporate income, is an attractive taxation model, but not every entrepreneur can take advantage of it.One of the key requirements to qualify for Estonian CIT, is to meet certain employment conditions. The regulations require a company to have at least three full-time employees for at least 300 days in a tax year.

The Estonian CIT, or flat rate on corporate income, is a favorable form of taxation, but it comes with the concept of hidden profits, which can be problematic for entrepreneurs.Hidden profits are monetary or non-monetary benefits made to shareholders, partners or their affiliates. The regulations are designed to prevent the circumvention of dividend taxation thrugh various forms of transfers of value.

The Estonian CIT is an attractive form of taxation, but its use comes with certain restrictions on the company’s structure. Can a silent company benefit from this tax regime?