Dividends: How we calculate
Calculate a standard profit distribution by an Estonian company.
How we calculate
Since 2025, a standard profit distribution is subject to company income tax at 22/78 of the net amount: from 1,000 euros of profit before tax, the owner receives 780 euros and the company pays 220 euros of tax.
Standard profit distribution only. Transitional arrangements, non-residents and other owner payments are excluded.
Which amount should you enter?
If the dividend paid to the owner is known, select “Dividend to owner” and enter 780 euros. In this standard distribution example, company income tax adds 220 euros, making the amount before tax 1,000 euros.
If profit before tax is known, select that input mode and enter 1,000 euros. The result is the same: 780 euros to the owner and 220 euros in company income tax. These are two ways to enter the same distribution; the owner’s amount excludes company income tax.