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If you own and run an Estonian company while operating outside Estonia, and you are not a tax resident in Estonia, the following principles apply regarding dividend payments.

If your company has earned profit and you'd prefer not to pay dividends at the moment, but you might change your mind in future, there are 2 possible approaches. It's up to you to decide and let us know.

Option A

If you already have an approximate idea of how much you'd potentially like to pay out as dividends in 2021, you'll declare the relevant shareholder's decision in your annual report.

In this case no further shareholder decisions would be required during the year, and you're free to decide when you actually make the dividend payments (e.g. on a quarterly basis), and the related tax payments.

Option B

If you are unlikely to pay out any dividends in 2021, it makes sense to declare the shareholder's decision in the annual report as follows - 'Not to pay out any dividends'. And if during the year you change your mind and would like to pay out x EUR as dividends, you'll make a formal decision (as a shareholder), and the rest of the process will follow.