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.