.png){kind=small}
New Security Tax
- Feb 28
- 2 min read
Updated: Sep 24
UPD (September 19, 2025): The planned new security tax has been postponed by the Estonian Parliament.
In December 2024, the Estonian Parliament approved the Security Tax Act (512 SE). The Act introduces a temporary, broad‑based security tax to bolster national defence investments, and it remains in effect until December 31, 2028.
Key Components of the Security Tax
VAT Increase: From July 1, 2025, the standard VAT rate rises from 22% to 24%.
Personal and Corporate Income Tax: Starting January 1, 2026, a 2% tax is imposed on both personal income and on the annual pre‑tax profits of resident companies (and permanent establishments of non‑resident companies).
Advance Payments: For corporate taxpayers, the tax on profits is paid in advance based on the previous fiscal year’s accounting profit, with quarterly payment schedules set from 2027 onward.
Purpose and Allocation
The additional revenue is earmarked for enhancing Estonia’s defence capabilities and funding security investments such as military equipment and infrastructure upgrades. The measures are designed so that only profitable entities contribute, ensuring that those without profit remain unaffected.
Further Information and Guidance
Estonian authorities—the Ministry of Finance and the Estonian Tax and Customs Board—have published detailed guidelines and official documentation on the Security Tax Act. These documents explain the calculation methods, payment deadlines, and conditions for both individuals and companies. For complete and up‑to‑date details, please refer to the official Ministry of Finance website and the Estonian Tax and Customs Board portal.
This new security tax is part of a broader fiscal strategy to secure Estonia’s national interests in a changing global environment, with ongoing oversight and review by the government.
If you need further clarification or tailored advice, please consult the official resources or contact a qualified tax professional.
Update: The planned temporary “security tax” — an additional 2% levy on income intended to run until the end of 2028 — will be abolished. Instead, a single, permanent income tax rate of 24% will apply from 2026.
Sourse:
