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Estonia abolishes temporary defense tax, increases several tax rates

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Estonia

  • On 19 June 2025, Estonia's Parliament abolished the planned temporary defense tax for 20262028, providing relief to businesses and individuals, with the law published in the State Gazette on 8 July 2025.
  • The corporate income tax rate will increase from 22% to 24% starting in 2026, applying to net dividends but not to annual profit, while dividends distributed in 2025 will still be taxed at the pre…

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