Estonia vs United Kingdom
Corporate Tax Comparison
Time of Update: Estonia: 4/05/2026 / United Kingdom: 4/02/2026
Compare Estonia and United Kingdom corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Estonia vs United Kingdom Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Estonia
United Kingdom
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:
1. Companies with profits exceeding £250,000 are subject to a main rate of 25% (effective from 1 April 2023).
2. Companies with profits not exceeding £50,000 are subject to a small profits rate of 19% (effective from 1 April 2023).
3. A tapered tax rate applies to profits falling between £50,000 and £250,000.
2. Companies with profits not exceeding £50,000 are subject to a small profits rate of 19% (effective from 1 April 2023).
3. A tapered tax rate applies to profits falling between £50,000 and £250,000.
CIT Return Due Date:
Corporate income tax is assessed and declared monthly.
CIT Return Due Date:
Tax returns need to be submitted within one year after the end of the accounting period.
CIT Payment Due Date:
CIT on distributed profits is payable upon distribution.
CIT Payment Due Date:
According to the scale of the payment company, there may be differences. For more information, please refer to the UK company summary.
CIT Estimated Payment Due Date:
Not applicable as tax is only due on distribution.
CIT Estimated Payment Due Date:
According to the scale of the payment company, there may be differences. For more information, please refer to the UK company summary.
Withholding Tax (WHT)
Estonia
United Kingdom
Resident Withholding Tax (Dividend/Interest/Royalty):
0/0/0
Resident Withholding Tax (Dividend/Interest/Royalty):
0/20/20
None-Resident Withholding Tax (Dividend/Interest/Royalty):
0/0/10
None-Resident Withholding Tax (Dividend/Interest/Royalty):
0/20/20
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Estonia
United Kingdom
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 regular corporate tax rate.
Effective Tax Rate (ETR)
Estonia
United Kingdom
Composite Effective Average Tax Rate:
17.0%
Composite Effective Average Tax Rate:
22.55
Composite Effective Marginal Tax Rate:
0.0%
Composite Effective Marginal Tax Rate:
11.51
