Estonia’s corporate income tax system is renowned for its efficiency and unique approach. Companies in Estonia are not taxed on retained and reinvested profits, but only on profits distributed as dividends, with a flat tax rate of 20%. This system encourages reinvestment and growth, reducing immediate tax burdens. Estonia also offers incentives like a reduced tax rate for consistent dividend payments. This framework, combined with Estonia’s robust digital infrastructure, positions the country as an attractive location for both startups and established businesses.
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The source of the article is from the blog hashtagsroom.com