When the lump-sum tax on company income pays off and what conditions must be met.
Estonian CIT (lump-sum tax on company income) defers tax until profit is distributed. A company that reinvests pays no CIT.
- as a rule only natural persons may be shareholders
- the company must employ staff or meet the payroll condition
- limited share of passive income
Estonian CIT is usually not available to companies with a foreign corporate shareholder. We will check this in a report.
This article is general in nature and does not constitute legal or tax advice. Legal status as of 17 October 2026.
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