Estonian CIT
Estonian CIT, i.e. a lump sum on the company’s income, is a solution that assumes that until the distribution of profit (to be paid out in the form of a dividend) or the loss coverage before the period of Estonian CIT taxation, the company, in principle, does not pay any income tax. It is not until the profit distribution or the coverage of the above-mentioned loss that the company is obliged to pay a tax.
After significant changes (some of the barriers to its application have been removed) that have recently been made, this form of taxation has become much more attractive for the companies.
Practice leader
Marzena Kidacka Ph.D.
partner, attorney-at-law, tax advisor, restructuring advisor
Services
- Assessment of the benefits of the transition to the Estonian CIT (analysis based on the data and business projections provided, whether the transition to the Estonian CIT would be beneficial and why)
- Analysis of the optimal moment of transition to the Estonian CIT
- Analysis of the conditions that have to be fulfilled to switch to the Estonian CIT; if a taxpayer does not fulfill those conditions – analysis of what activities have to be taken up to fulfill those conditions and what the tax consequences of those adjustment activities are (selection of the most optimal solution)
- Comprehensive support in the Estonian CIT implementation
