Estonian dividend tax calculator

The calculator works out the income tax an Estonian company pays when it pays a dividend. Enter the net dividend the shareholders receive, or the total budget for the dividend and its tax, the date of the payment, the kind of dividend and the part paid to individuals. It shows the tax, any income tax withheld, the tax period, and the date by which the company files the TSD and pays the tax.

The rules it applies

• The company pays, not the shareholder. A resident company pays income tax on profit when it distributes it, in the month of the payment (Income Tax Act § 50 (1)). Nothing is withheld from the net dividend, whether the shareholder is a person or a company, resident or not, except in the two 7 percent cases below.
• The rate is 22/78 of the net dividend for a payment on or after 01.01.2025. The rate is 22 percent, applied to the net amount divided by 0.78 (§ 4 (1), (1^1)). That is about 28.2 percent of the net dividend, or 22 percent of the total cost.
• Before 2025 the rate was 20/80, and from 2019 to 2024 a regular dividend could be taxed at 14/86. Both ended for payments from 01.01.2025 (act of 20.06.2023). A rise to 24/76 from 2026 was cancelled before it took effect (act of 03.12.2025).
• The 7 percent withholding. Until 31.12.2024 the company withheld 7 percent from a regular dividend taxed at 14/86 and paid to a person (act of 20.06.2023). From 01.01.2025 a company withholds 7 percent when it pays on to a person a dividend that is tax-free because it came from a dividend received, if the profit behind it was taxed at 14/86; no company income tax is due on that dividend (§ 61 (68)). The calculator applies the 7 percent to the part paid to individuals.
• The payment date decides. The rate and the tax period follow the month of the payment, not the year of the profit or the date of the shareholders' resolution (§ 3 (2), § 50 (1), § 61 (19)).
• The due date. The company declares the dividend on TSD annex 7, lists each recipient on form INF 1, and pays the tax by the 10th of the month after the payment (§ 54). A 10th on a weekend or public holiday moves to the next working day (Taxation Act § 50 (1)).

Worked example

The shareholders resolve a net dividend of 7 800 euros, paid on 15.09.2026:

The tax period is September 2026. The 10th of October 2026 is a Saturday, so the TSD and the payment are due on Monday 12.10.2026 (EMTA calendar).

The other way round: with a total budget of B euros, the net dividend is B x 0.78 and the tax is B x 0.22. A common error is to take 22 percent of the net dividend (1 716 euros on 7 800 euros) instead of 22/78 (2 200 euros); the difference becomes a tax debt with interest.

What it does not cover

• Whether the company may pay at all. An OÜ pays only from profit shown in an approved annual report, and not when its net assets would fall below the share capital plus the reserves that may not be paid out. The tax counts in that test (Commercial Code § 157).
• Other dividends paid out of a dividend received from a subsidiary in which the company held at least 10 percent, which can be tax-free (§ 50 (1^1)). The calculator covers only the 7 percent case above.
• In the 7 percent case, the basic exemption deducted before the withholding, and a lower rate under a tax treaty for a shareholder who lives abroad.
• A payment before 01.01.2019.
• The shareholder's own tax at home. A shareholder who lives abroad may owe tax in that country. See founder residency.

The guides on corporate income tax on distributions and dividends explain the model and the steps, and founder remuneration compares a dividend with a salary.

General information, not advice for your situation. The law as in force on 30.09.2026.