Estonian CIT

Estonian CIT, also known in Poland as a lump sum on corporate income, is a corporate taxation method that allows companies to pay corporate income tax only when they decide to distribute dividends to shareholders. This mechanism allows businesses to defer income tax payments until they distribute profits to shareholders.

Implementing the Estonian CIT model is associated with the possibility of improving liquidity, increasing the funds available to cover the costs of current operations, but also planning future investments more efficiently. By switching to Estonian CIT, you gain control over both the timing of your tax liability and the amount owed. Taxation of profit distributes as dividends is lower than under the classical rules. When taxed as a lump sum on corporate income, you will pay significantly less.
With our support, you will learn how to take advantage of settlement under the Estonian model, which can significantly reduce your real tax burden. We also offer assistance in resolving potential problems and doubts that may arise during the adaptation to the new solution, ensuring that the process goes smoothly.

To benefit from Estonian CIT, a company must meet certain criteria. The fundamental criteria include:

• Having partners who are individuals - this is an important aspect that may affect the availability of certain forms of support or tax benefits


• Employment of employees - the company must achieve a certain minimum level of employment. This requirement emphasizes the importance of creating new jobs and contributes to the development of the local labour market

To support the development of new businesses, several facilities are provided to ease their start-up and expansion. Newly established entities can enjoy a four-year transition period to meet the employment level requirement. Such a time buffer is intended to give entrepreneurs sufficient space to stabilize and expand their businesses before they are required to fully comply with all requirements.
The Estonian CIT is particularly beneficial for companies that want to reinvest their profits in growth. It is also an attractive solution for start-up companies that want to simplify their accounts and focus on running their business. All calculations and documentation are based solely on the principles found in accounting regulations. There is no tax accounting, tax expense counting or depreciation in Estonian CIT. You will pay tax only when you pay out a profit. It is up to the company to decide when and in what amount it distributes profit to shareholders. In addition, there are no advance tax payments in Estonian CIT, so your business will have better liquidity.

We can help you identify whether and how Estonian CIT can support your business. Our specialists offer comprehensive advice on implementing the Estonian CIT taxation model. We assess your business's eligibility for the Estonian CIT taxation model, conducting detailed analysis and calculations to determine potential benefits and requirements. Our services are directed at helping you choose the optimal taxation model for your business, while ensuring tax security.

Contact us today to learn more and start a partnership that can change the future of your business. Together we will make taxes no longer a problem for you, but a tool for success.