Estonia's corporate tax system is unique: profit that is not distributed is taxed at **0 %**. Income tax of 20 % (effective gross rate 25 %) is paid only when profit is distributed as dividends. Regular dividends (3 years in a row) are taxed at 14 %. 4b2b automatically keeps a distribution ledger, distinguishes retained vs distributed profit, and calculates tax at distribution time.
I want to reinvest my OÜ's profit into new projects — do I have to pay tax immediately?
0 % income tax on reinvested profit. The platform maintains a dividend hierarchy ledger: 4500 (retained earnings) vs 4510 (distributed earnings). Tax kicks in only when you declare a movement on account 4510.
We paid out a EUR 100,000 dividend — how is it declared on TSD?
TSD form Part A line 1 (Dividend) is populated automatically with the net amount. Tax 20/80 = EUR 25,000 is calculated and remitted to EMTA by the 10th of the following month. The platform fills TSD completely automatically.
I've distributed a similar dividend amount 3 years running — do I still pay 20 %?
Regular dividend (from year 4 in the same amount) is at the 14 % rate. The platform tracks prior-year history and automatically applies the reduced rate when qualification conditions are met (3 years ≥ distributed amount).
The entire 4b2b ecosystem is built for the Estonian market — from e-Residency through EMTA and X-Road to ID-card / Smart-ID signatures.
