Estonia vs Germany
Corporate Tax Comparison
Time of Update: Estonia: 4/05/2026 / Germany: 4/02/2026
Compare Estonia and Germany corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Estonia vs Germany Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Estonia
Germany
General CIT Rate:
Estonia does not tax retained earnings. Distributed profits are taxed at a rate of 20%. A reduced rate of 14% applies to regularly distributed dividends. From 2025, the general rate for distributed profits will increase to 22%.
General CIT Rate:
Corporate income tax is 15%, plus a 5.5% solidarity surcharge on the corporate income tax, resulting in a combined rate of 15.825%. Trade tax applies separately and generally ranges from 8.75% to 20.3% depending on the municipality. According to legislative changes adopted in 2025, the corporation tax rate is planned to decrease to 14% in 2028, 13% in 2029, 12% in 2030, 11% in 2031, and 10% from 2032 onward, with the solidarity surcharge continuing to apply.
CIT Return Due Date:
Corporate income tax is assessed and declared monthly.
CIT Return Due Date:
July 31st (or extended to the end of February of the following year if the taxpayer instructs a professional tax advisor).
CIT Payment Due Date:
CIT on distributed profits is payable upon distribution.
CIT Payment Due Date:
As stated in the assessment notice.
CIT Estimated Payment Due Date:
Not applicable as tax is only due on distribution.
CIT Estimated Payment Due Date:
Quarterly installment payments are due on the 10th day of March, June, September, and December.
Withholding Tax (WHT)
Estonia
Germany
Resident Withholding Tax (Dividend/Interest/Royalty):
0/0/0
Resident Withholding Tax (Dividend/Interest/Royalty):
25/25/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
0/0/10
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/0/15
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Estonia
Germany
General Capital Gain Tax Rate:
Estonia does not have a separate capital gains tax; gains are taxed as regular income at the corporate rate when distributed.
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate tax rate.
Effective Tax Rate (ETR)
Estonia
Germany
Composite Effective Average Tax Rate:
17.0%
Composite Effective Average Tax Rate:
26.59
Composite Effective Marginal Tax Rate:
0.0%
Composite Effective Marginal Tax Rate:
11.00
