Dividend calculator
Work out the income tax a company pays on a dividend in Estonia, and the total cost. Start from the net amount or from the total cost.
How this is worked out
- Net to total cost. The tax is the net amount times 22, divided by 78, rounded half up to the cent, once. The total cost is the net plus that tax.
- Total cost to net. The net is the total cost times 78, divided by 100, rounded half up to the cent, once. The tax is the total cost minus the net.
Worked example: a net dividend of EUR 1,000.00 gives tax of EUR 282.05 (1,000.00 × 22 ÷ 78) and a total cost of EUR 1,282.05.
Dividends in Estonia, in short
A company in Estonia pays no income tax on the profit it keeps. Income tax falls due when it distributes profit, such as a dividend, and the tax is 22/78 of the net amount paid out. The company pays it on top of the dividend, so the total cost is higher than the amount received.
This calculator uses the rate in force today. Dividends paid before 2025 followed the earlier rule, so check the rate for that year before you use these figures.
Read the guide
Questions
- What is the 22/78 rule?
- Since 2025 a company pays income tax of 22/78 of the net amount it distributes as dividends. For every 78.00 paid to the shareholder, the company pays 22.00 in tax. Profit the company keeps is not taxed.
- Why is the total cost higher than the dividend?
- The tax is paid on the dividend, so it sits on top of it. A net dividend of 1,000.00 costs the company 1,282.05 in total: 1,000.00 to the shareholder and 282.05 of income tax.
- Does this show every tax on a dividend?
- It shows the company income tax on the distribution. Check the official rules for any other tax on the person who receives the dividend, because it depends on their situation.
- Does the calculator send my amounts anywhere?
- No. The amounts are worked out in your browser and are not sent to Sapita. The site counts page views only.
Sapita is software and education, not accounting or tax advice. Check the official rules before you file.