Estonia's corporate income tax is set at 20%: https://europa.eu/youreurope/business/vat-customs/company-tax/estonia/index_en.htm https://europa.eu/youreurope/bu

Estonia's corporate income tax is set at 20%: https://europa.eu/youreurope/business/vat-customs/company-tax/estonia/index_en.htm https://europa.eu/youreurope/business/vat-customs/company-ta... As for the budget share, a significant part of that is going to be govt-owned corporations that are used as cash-cows, for example the energy production / distribution monopolies, national lottery, Tallinn Port etc. Last month's news - this year they contributed 157MEUR dividends: https://www.aripaev.ee/uudised/2018/04/19/riik-votab-ettevotetest-157-miljonit-dividende https://www.aripaev.ee/uudised/2018/04/19/riik-votab-ettevot... In the end, "regular" companies end up paying less than you imagine. I think it could be a sign that the policy is working - companies are investing into the future and "paying it forward". Or they are doing creative feats like taking out profits as loans to parent companies, which is also known to happen, specifically the big Scandinavian banks here. Specifically for startups, it is going to make a big difference if you do not need to pay yearly corporate tax at an arbitrary date (in relation to your business) and can a) postpone this until profitability or b) never pay a dime if your idea never pans out. You can even steer your company towards an exit without ever having to think about it. Many people I know personally only distribute as much profit as they need for themselves. It is not double taxed with personal income tax, so it is spending money already after paying the corporate tax. This has lead to a debate as to whether this actually constitutes "entrepreneur salary" with entrepreneurs therefore paying less taxes than employees (the salary taxes are much higher: http://palk.crew.ee http://palk.crew.ee). That is why for a startup you can "essentially" forego thinking about it. When you do, you know you have made it :)