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Estonian Government's Coalition Agreement Includes Plans for Tax Increases

14 April 2023

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Proposed Changes

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Estonia

The Estonian government has published the Coalition Agreement 2023-2027, which was signed by the main parties on 10 April 2023. Among other things, the agreement includes the government's tax policy plans. Some of the main measures include: Increasing VAT by 2 percentage points from 20% to 22% in 2024 and eliminating the reduced VAT rate of 9% for accommodation services providers from 1 January 2025; Increasing the personal and corporate income tax by 2 percentage points from 20% to 22% in 2025 and eliminating the reduced income tax rate of 14% that applies to regularly distributed profits; Eliminating the additional...