Estonia to Raise Taxes to Cover Higher Defense Spending

The Estonian government agreed in principle Tuesday to impose a 2% tax on accounting profits of companies and raise value-added tax to 24% in a bid to bolster the country’s security and defense, according to a press release from the country’s ministry of finance.

The 2% tax on companies’ accounting profits — to be paid both by resident companies and permanent establishments of non-resident companies — will be in addition to the corporate tax Estonia charges on dividend payments.

Taxation of personal incomes will also increase by two percentage points as part of a legislative proposal to be finalized ...