As Estonia’s largest tech conference Latitude59 approaches, we entered something known as the ‘sauna state of mind’, opening up about taboo subjects and uncovering the naked truths about startups, tech, investing and doing business in Estonia.
Estonia has been ranked number one for tax competitiveness for six years running by the Tax Foundation. This isn’t a measure of low taxation though.
The index mostly measures how well designed the taxation system is, both for achieving policy objectives and for being simple to pay. Estonia ranks top because we have fair, simple, and smart taxation.
For example, Estonia doesn’t tax companies when they make profits but taxes them instead when they distribute dividends. This encourages companies to re-invest in themselves. You definitely shouldn’t confuse that with 0% corporate tax though. Estonia wants you to grow so you can (happily) pay even more taxes in future!
Want to know more naked truths about Estonia? You are welcome to step into our sauna’s waiting room here and find out all the naked truths about doing business in Estonia. See you at Latitude59 and our virtual investment sauna here.