Germany vs Estonia

Corporate income tax is 15%, plus a 5.5% solidarity surcharge on the corporate income tax, resulting in a combined rate of 15.825%. Trade tax applies separately and generally ranges from 8.75% to 20.3% depending on the municipality. According to legislative changes adopted in 2025, the corporation tax rate is planned to decrease to 14% in 2028, 13% in 2029, 12% in 2030, 11% in 2031, and 10% from 2032 onward, with the solidarity surcharge continuing to apply.

Estonia does not tax retained earnings. Distributed profits are taxed at 22% (22/78 of the net distribution) since 1 January 2025.

July 31st of the year after the tax year (or the last day of February of the second year after the tax year if a professional tax advisor prepares the return).

Corporate income tax is assessed and declared monthly.

As stated in the assessment notice.

CIT on distributed profits is payable upon distribution.

Quarterly installment payments are due on the 10th day of March, June, September, and December.

Not applicable as tax is only due on distribution.

25/25/0

0/0-22/0-22

25/0/15

0/0/10

19

24

Capital gains are subject to the normal corporate tax rate.

Estonia does not have a separate capital gains tax; gains are taxed as regular income at the corporate rate when distributed.

26.59

18.7%

11.00

0.0%