Estonian CIT

Estonian CIT

 

From January 1, 2022. introduced changes that significantly simplified the rules of taxation of the so-called Estonian CIT.

It is a solution addressed primarily to companies that allocate a significant part of their profit to investments. The mechanism of taxation with Estonian CIT works in such a way that the obligation to pay the tax arises when the profit from the company is transferred to the partner. As long as the earned profits are reinvested or simply left in the company – taxation will not occur. However, even with a transfer to a partner, the effective taxation of the distributed profit will be lower than under the general rules.

Moreover, the Estonian CIT allows to avoid many unfavorable changes introduced by the so-called Polish Deal, among others the company covered by Estonian CIT is not subject to minimum income tax and the provisions on hidden dividends.

The support we offer includes:

  • verification of the fulfillment of the conditions for entry into the Estonian CIT,
  • calculation of projected tax savings,
  • identification of risk areas,
  • step-by-step guide through the process of changing the taxation rules,
  • advice on current tax settlements.

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