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Government Makes VAT Hike Permanent, Scraps Temporary Defense Tax for Stable Revenue

  • VAT will increase to 24 percent in July and become permanent
  • The temporary defense tax is scrapped
  • 2 percent levy on corporate and income tax is removed
  • Current VAT rate of 22 percent will rise to 24 percent on July 1
  • Income tax rate will increase to 24 percent in 2026
  • Entrepreneurship account tax rate will rise to 22 percent next year
  • Tax changes aim to reduce burden for individuals and businesses
  • Companies will pay income tax only on distributed profits
  • Planned 2 percent tax on company profits in 2026 is canceled
  • Avoided IT development costs for security tax implementation

Source: news.err.ee

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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