Updated for AccRes. This AccRes guide to “What is the amount of taxes on dividends?” has been refreshed for the new knowledge base: the practical workflow is kept intact, with added context for AccRes clients and a reminder to check the service interface against the screenshots before following the steps.
From 2025, dividends distributed by an Estonian company are generally taxed at company level at the rate of 22/78.
The reduced 14/86 rate for regularly distributed dividends was abolished from 1 January 2025. In the ordinary case, the additional 7% withholding from an individual dividend recipient no longer applies.
If the company redistributes dividends received by 31 December 2024 that were already taxed at the old 14/86 rate, transitional rules may apply. In those cases, check the calculation with your accountant before making the payment.
A simple calculation for a standard payment: if you want to pay 1,000 euros in net dividends, the income tax is 1,000 × 22/78 = 282.05 euros.