Approval of Tax Increases in Estonia

The Parliament of Estonia (Riigikogu – State Assembly) approved the increase in the rates of two major taxes – Value Added Tax (VAT) and Corporate Income Tax/Personal Income Tax (CIT/PIT) in mid-June 2023. The corresponding legislative bills, containing the agreed-upon amendments, now await the signature of the country’s President, Alar Karis. The coalition agreement, signed by the country’s Prime Minister, Kaja Kallas, and representatives of the parties forming the coalition government, serves as the foundational document that incorporates these amendments. The agreement is valid from 2023 to 2027, with tax regulations being an essential component of the agreement.

Law No. 147 SE (Value Added Tax):

Law on Income Tax and Defense Service No. 148 SE:

Tax Overview in Estonia (as of July 2, 2023, potential changes not considered, source – PWC):

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