On 22 September 2026, the Council of Ministers adopted three draft acts amending the tax system: (1) an increase in excise duties on alcohol from 2027, (2) tightening of the Estonian CIT regime by blocking mid-year switches and curbing lease/trademark optimization, and (3) modifications to the lump-sum taxation regime for recorded revenues. The package aims to seal tax loopholes, protect energy consumers from price spikes, and broaden the tax base. Parliamentary debate is scheduled for October 2026.
Key Takeaways
- Estonian CIT Lock-In: Taxpayers cannot switch to Estonian CIT during the tax year; anti-avoidance rules target lease and IP royalty stripping.
- Lump-Sum Adjustments: Certain revenue categories reclassified, potentially increasing effective rates for service providers.
- Energy Price Shield: Excise revenue partly offsets household energy cost subsidies.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement