Israel vs Estonia
Corporate Tax Comparison
Time of Update: Israel: 4/04/2026 / Estonia: 4/05/2026
Compare Israel and Estonia corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Israel vs Estonia Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Israel
Estonia
General CIT Rate:
23
General CIT Rate:
Estonia does not tax retained earnings. Distributed profits are taxed at a rate of 20%. A reduced rate of 14% applies to regularly distributed dividends. From 2025, the general rate for distributed profits will increase to 22%.
CIT Return Due Date:
Within five months after the end of the tax year.
CIT Return Due Date:
Corporate income tax is assessed and declared monthly.
CIT Payment Due Date:
If the remaining balance is paid before the end of the first month after the end of the tax year, the taxpayer should be completely exempt from any interest and linkage differences.
CIT Payment Due Date:
CIT on distributed profits is payable upon distribution.
CIT Estimated Payment Due Date:
Taxpayers must prepay their taxes on a monthly basis before the 15th of each month. According to a fixed percentage of the company's turnover, there are 12 months of prepayments, or based on the previous year's tax assessment, there are 10 months of payments starting from the second month of the company's tax year.
CIT Estimated Payment Due Date:
Not applicable as tax is only due on distribution.
Withholding Tax (WHT)
Israel
Estonia
Resident Withholding Tax (Dividend/Interest/Royalty):
25/25/25
Resident Withholding Tax (Dividend/Interest/Royalty):
0/0/0
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/0-25/25
None-Resident Withholding Tax (Dividend/Interest/Royalty):
0/0/10
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Israel
Estonia
General Capital Gain Tax Rate:
Capital gains are constrained by the normal corporate income tax rate.
General Capital Gain Tax Rate:
Estonia does not have a separate capital gains tax; gains are taxed as regular income at the corporate rate when distributed.
Effective Tax Rate (ETR)
Israel
Estonia
Composite Effective Average Tax Rate:
21.47%
Composite Effective Average Tax Rate:
17.0%
Composite Effective Marginal Tax Rate:
16.63%
Composite Effective Marginal Tax Rate:
0.0%
