Dividend taxes 2025
- From January 1, 2025, dividends are taxed only at the income tax rate of 22/78 TMS § 4 lg 1
- From 2025, the tax benefit for regularly paid dividends, the lower dividend income tax rate of 14/86, and the 7% income tax withholding on dividends paid to individuals are no longer applicable in Estonia.
- When forwarding dividends taxed at a lower rate until 2024, the transitional provision must be considered. TMS § 61 lg 68
What is a dividend and how is it taxed
- A dividend is a payment to shareholders from net profit or undistributed profit
- A resident company pays income tax at a rate of 22/78 when distributing dividends
- Declared using form TSD annex 7 and INF 1
When must income tax on dividends be paid?
Declaration and payment of income tax by the 10th day of the month following the month of dividend payment
