The Security Tax is a temporary state tax introduced to raise additional funds for strengthening Estonia's national security and defense capabilities. The Security Tax Act will take effect on January 1, 2026, and remain in force until December 31, 2028.
The security tax rate is 2%, and the taxable base is the annual profit before income tax, after deductions specified by law. The comprehensive list of potential deductions has yet to be finalized and is expected to be published by the end of 2025.
The security tax is paid in advance installments, with 2025 designated as the first taxable base year.
The 2026 advance payments are calculated based on 1/2 of the pre-tax profit from the financial year ending in 2025. The tax on this amount is paid in two equal installments by September 10 and December 10. If the financial statement for the year ending in 2025 is not submitted, the most recently submitted financial report will be used as the basis. This principle will continue in subsequent years—if the financial statement is not submitted by the deadline, the last submitted report will determine the advance payment amount.
Companies must make quarterly advance payments by the 10th day of the third month of each quarter.
In 2027 and 2028, advance payments must be made by March 10, June 10, September 10, and December 10.
- In the first half of the year, the quarterly advance payment is calculated as 1/4 of the taxable profit from the previous or the preceding financial year, depending on whether the financial statement for the previous year has been submitted.
- In the second half of the year, the quarterly payment is based on 1/4 of the taxable profit from the previous financial year.
Companies must submit a security tax declaration to the Estonian Tax and Customs Board in accordance with their financial reporting deadlines and must pay the tax based on the amounts declared.