Publications

An article "The Year 2009 and Estonian Corporate Taxation System" was published in Mondaq by our partner Priit Lätt and lawyer Rainer Eidemiller.

On 1 January 2009, the transition period granted to Estonia for harmonising the Income Tax Act with the EU Parent-Subsidiary Directive will come to an end. The Estonian Income Tax Act does not tax the income earned by companies upon its receipt, but rather upon distribution. Hence, it is disbursements, including dividends that are subject to taxation. However, the directive prohibits the subjecting to income tax of profit distributable by a subsidiary of one member state to a parent of another member state, if the parent’s holding in the subsidiary is greater than 10% as of 1 January 2009.

To harmonise the Estonian Income Tax Act with the directive, the Estonian Ministry of Finance has analysed six alternative solutions. The article introduces and discusses two most realistic solutions of the analyze.

For further information, please contact partner Priit Lätt (priit.latt@glimstedt.ee).