What is Estonian CIT — and is it right for you?

Estonian CIT — formally the lump-sum tax on company income (ryczałt od dochodów spółek) — changes when a company pays corporate tax. Instead of taxing profit as it is earned, tax becomes due only when profit is distributed to owners. Earnings that stay in the company to fund growth are not taxed in the meantime.

For profitable companies that reinvest, this can mean a materially lower effective tax burden and simpler, cash-flow-friendly accounting. It is not for everyone, though: there are conditions on shareholders (only natural persons), employment levels, and the type of income the company earns, and leaving the regime has its own rules.

Meyis assesses whether Estonian CIT fits your structure, models the likely effect on your tax bill, and manages the election and ongoing compliance if it makes sense. Ask us for an assessment.