The Estonian government has recently approved draft legislation to amend the Income Tax Act based on amendments made to the EU Parent-Subsidiary Directive in 2014 and 2015 concerning hybrid mismatches and anti-avoidance provisions. The proposed amendments include that: The tax exemption for dividends received from a subsidiary in another EU Member State will not apply if the dividend payments are treated as deductible for the subsidiary; and The tax exemption for dividends or other profit distributions would not apply if a transaction or series of transactions are not genuine (main purpose or one of the main purposes is obtaining a...