Key things to know about your company taxes

The aim of this page is to introduce the most important tax topics you need to know as a non-resident founder of an Estonian company.

Taxation of international businesses is an incredible complex topic and this is only an overview. Speak to an expert for more information tailored to your company and situation. The e-Residency Marketplace has a number of experienced tax consultants to support your business.

Where to pay company taxes?

Estonian companies = Estonian tax residents
Companies are registered as tax residents in Estonia by Estonian Tax & Customs Board when established.

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If your activities create a permanent establishment in another country, your company will have dual tax residency and tax liabilities in that country.

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e-Residency ≠ tax residency
E-Residency doesn’t exempt companies from dual tax residency or foreign tax liabilities.

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Estonia has signed treaties with many countries to avoid double taxation, so dividends distributed in Estonia may be exempted in full from income tax here.

Resources

Example: a German resident running their OÜ from Germany

  • You conduct the core business activities of your Estonian company, i.e. consult your clients, provide services, etc, in an office in your home country of Germany 
  • The German tax authority might decide that a PE exists, meaning profits from business activities carried out through that office would be taxable in Germany
  • E-Residency does not exempt your Estonian company from these foreign tax liabilities
  • The treaty between Estonia and Germany will ensure that dividends distributed in Estonia will be exempt in full from income tax here
More examples