Estonia to Replace Security Tax with Permanent Tax Rate Increases

The Estonian government submitted a draft bill to parliament on 9 May 2025 that would amend relevant Acts to essentially replace the temporary 2% security tax with permanent tax increases. The Security Tax Act, approved in December 2024, provided for the introduction of a temporary 2% security tax on personal income and corporate profits from 2026, as well as a temporary 2% increase in the VAT rate to 24% from 1 July 2025. The draft bill repeals the 2% security tax on personal income and cor…