Glossary
Income tax on distributions
Definition
Income tax on distributions is the corporate income tax that Estonia charges when profit is paid out as a dividend or another distribution. The tax is calculated on the amount paid out, at the rate for the year of payment. It is reported in the TSD return for the month of payment, which is due on the 10th of the following month.
Example. For a dividend paid out in March, the tax is calculated on the amount paid and appears in the March TSD return, due on 10 April.
Why it matters for your company
The company pays this tax on top of the amount you receive, so a dividend costs more than the net amount suggests. Comparing dividends with salary needs this tax in the sum.
Where you see it in Sapita
On the calendar item that follows a recorded dividend payout, with a note that explains the calculation.