We are pleased to present another edition of the "Purple Prospectus"Estonian flat-rate tax – system that gains rising popularity among taxpayers, and after recent amendments still remains on its high level.

As for 2022, almost 8 thousand taxpayers have opted for this taxation system, and as we note – many others are willing to do the same. As the practice of applying the new provisions has shown, there were many confusions and imprecisions. The legislator has noticed the numerous defects of the implemented model and has made amendments which are already in force or will be on 1 January 2023.  As a result, we uphold our positive view on the Estonian flat-rate and still consider it one of the most taxpayer-friendly taxation model.

According to the adopted amendments of regulations:

  • taxpayers will also have a new deadline for paying the flat-rate tax on distributed profit and distributed net profit income;
  • Expenditures on company cars used for mixed purposes will be considered a non-business-related expenditures and thus will be subject to the flat-rate taxation.

We would like to note that the Prospectus is based on the act enacted on 7th October this year and covers so-called Polish Deal 3.0.

We would like to invite you to read our report. We hope that the conclusions presented herein will help you make advantageous business decisions.

Purple Prospectus "Estonian CIT" a real chance for lack of taxation check if you can benefit from it

Guidelines for taxpayers on the flat rate tax on corporate income CIT taxation system including amendments as of 2022
and 2023

See report

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Grzegorz Szysz

Partner, Attorney-at-law, Tax Advisor

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Grzegorz Szysz

Partner, Attorney-at-law, Tax Advisor

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