The corporate income tax proposed by the Social Democrats will be introduced in 2026

In 2026, businesses will start paying a two percent income tax, which the Social Democrats included in the updated ruling coalition agreement. Social Democratic leader Lauri Läänemets (center) warmly greets party comrades, ministers Piret Hartman and Vladimir Svet, on Sunday evening. Läänemets has reason to celebrate, having recruited an influential politician from Tallinn into the party and getting corporate income tax included in the coalition agreement. Photo: Martin Pedaja

In 2026, businesses will start paying a two percent income tax , which the Social Democrats included in the governing coalition's updated deal.

Translation: Ewa Ojrzynska

Social Democratic Party Chairman Lauri Läänemets confirmed that a corporate income tax is their proposal. According to the Minister of the Interior, government partners would prefer an even higher increase in the sales tax (VAT).

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