This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our PRIVACY POLICY for more information on the cookies we use and how to delete or block them.
  • Under Estonian CIT, renting from a shareholder generates hidden profits
Tax Alert:

Under Estonian CIT, renting from a shareholder generates hidden profits

18 January 2023

Rafał Kowalski, Head of Tax Department, Qualified Tax Advisor |

A reasonably acting business entity strives to equip the company with the assets necessary to run the business, rather than generating additional costs of having to rent the assets necessary to run the business ― is the position presented by the tax authorities, which have consistently classified the fees paid by companies to rent equipment and real properties from their shareholders as hidden profits.

More details available in our Alert.