Who Estonian CIT suits
Estonian CIT, the lump-sum taxation of company income, defers tax until the moment profit reaches the shareholders. Reinvesting the funds the company has earned triggers no tax, yet the statute also taxes hidden profits and expenses unrelated to business activity, a loan to a shareholder among them, and tax then arises with no profit distribution at all. The regime works well in companies that are growing and want a simpler settlement, provided they meet every entry condition, including those on employment, the circle of shareholders, the revenue structure and a notification filed within the statutory deadline.
What the fee covers and what to watch for
We begin by checking whether the company meets the entry conditions, because those conditions decide whether Estonian CIT is available at all. We then prepare the ZAW-RD notification, the resolutions and the supporting documents, and set out the consequences of entry, including the opening adjustment. The fee does not cover ongoing bookkeeping during the regime, an individual tax ruling or a dispute with the tax authority. Where a ruling is advisable, we say so and price it separately.
Obligations during the regime
Entering the regime changes the rhythm of settlements rather than ending them. Hidden profits, expenses unrelated to business activity and distributions each carry their own consequences, so the company needs to recognise these events before they occur rather than after the books close. We describe them in the memorandum and stay available during the first period so that the treatment of borderline transactions is settled in advance.