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Estonian Cabinet Approves New Security Tax

19 September 2024

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Proposed Changes

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Estonia

Estonia's Ministry of Finance issued a release on 17 September 2024 announcing that the Cabinet has approved a new broad-based security tax that will apply from 2025 to 2028. As previously reported, the security tax is one of the measures proposed by Estonia's new government as part of the Coalition Agreement 2024-2027 and will be used for the development of Estonia's defense capabilities and security investments. As approved by the Cabinet, this includes: A 2% increase in VAT from Summer 2025 (1 July 2025) A 2% security tax on personal income from 2026; and A 2% security tax on company...