Estonia’s security tax turned into tax increases
The law concerning Estonia’s security tax was amended in May 2025 so that the general 2% corporate income tax was abolished. Instead, the income tax on corporate dividends and personal income was increased by two percentage points. The previous law’s provision to raise the general value-added tax (VAT) remains in effect and will come into force on July 1, 2025. Following the amendment, the tax changes are valid until further notice.
- From July 1, 2025, the general VAT rate will increase from 22 percent to 24 percent.
- From January 1, 2026, the corporate income tax on dividends will increase by 2 percentage points from 22 percent to 24 percent.
- From January 1, 2026, personal income tax will increase from 22 percent to 24 percent.