CIT

As a general rule, the period of taxation under Estonian CIT is 4 tax years, with the possibility of extension for another 4 tax years, but there are situations in which a taxpayer may lose the right to benefit from this taxation system despite the lack of expiration of this period.

The Estonian CIT system, an alternative to the “classic” CIT, has different rules regarding rates and calculation of tax due. Tax payment deadlines also vary depending on the type of taxable income. In this post, we will discuss in more detail the issues of tax rates and payment deadlines.

Non-business expenses are one of the key elements of taxation in the Estonian CIT system. Although the legislature does not provide a direct definition of which expenses fall into this category, we can find some guidance in the Guide to Lump Sum Tax on Corporate Income and in the practice of the interpretive authorities. In this post, we will discuss the general concept of such expenses, how to apply the relevant regulations, and how the individual approach matters in this regard.

There are many types of benefits that, although paid to related parties, are not classified as hidden profits. In this article, we will discuss in detail which benefits are excluded from the definition of hidden profits under Estonian CIT, what are the exceptions under the CIT Law, and what documentation issues are crucial, using the example of the use of company cars.

Hidden gains are one of the most interesting and complicated aspects of taxation under Estonian CIT. They are special categories of benefits that are designed to prevent untaxed distributions from the company. In this article, we discuss what exactly these hidden gains are, how they are defined in the CIT Act, and how they are interpreted and applied through examples.

The Estonian CIT introduces unique rules for determining the tax base. In this post, we discuss in detail the various categories of income that are taxable under Estonian CIT, such as income from hidden profits, income from changes in the value of assets, and more.

The Estonian CIT offers many tax benefits, but it is not available to all entities. In this post, we will discuss which groups of entities cannot take advantage of this taxation regime, broken down into permanent and temporary exclusions. We will also discuss specific scenarios, such as conversions of sole proprietorships into limited liability companies and situations involving operations in special economic zones.

The Estonian CIT offers new tax opportunities for companies, but it is not available to everyone. To take advantage of it, your company must meet specific criteria, which we discuss in this post. We touch on the company’s legal form, revenue structure, ownership of shares in other entities, and employment. Finally, we discuss specific conditions for new and small companies. Does your company meet these requirements? Find out more by reading our latest blog post.