Minister: Estonia can postpone minimum corporate tax until 2030
Estonia will be able to delay the implementation of the global minimum corporate income tax rate until 2030, Minister of Finance Keit Pentus-Rosimannus (Reform) said after a meeting of EU ministers on Tuesday.
Nothing will change for countries with a turnover of below €750 million, Pentus-Rosimannus said. Estonia will also be able to maintain the current system where income tax is exempt for reinvested earnings.
Estonia has been fighting against the global tax because it does not have a corporate income tax rate for retained and reinvested profits.
"During the negotiations, we have fervently defended Estonia's interests and received essentially all the exceptions in the draft that are important to us, so from our point of view, the agreement could have been approved today," said Pentus-Rosimannus.
"It has been good to see how other Member States have begun to see the pros and cons of the minimum tax and look for the best solutions."
The minister highlighted the possible postponement of the tax until 2030 for countries hosting fewer than 12 group headquarters with a turnover of €750 million.
"This would mean that we would start applying the minimum tax domestically only after 2030 and even then only to large corporations with an annual turnover of more than €750 million. For 99 percent of Estonian companies, nothing would change regarding taxation according to the current agreement," she said.
EU ministers did not reach a unanimous final agreement on the rule on Tuesday as Poland opposed it.
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Editor: Helen Wright