# Here’s Why Tax Evaders Are Disappointed in Estonian E-Residency ![rw-book-cover](https://readwise-assets.s3.amazonaws.com/static/images/article3.5c705a01b476.png) URL:: https://medium.com/e-residency-blog/heres-why-tax-evaders-are-disappointed-in-estonian-e-residency-2322644f5f59 Author:: Dmitri Jegorov ## Highlights > our tax rate on distribution is 20% on sporadic or 14% on regularly distributed profits (7% withholding tax adds to the latter if distributed to natural persons). > If, for example, a French entrepreneur opens a business in Estonia through e-Residency, but all of his or her physical operations are from France, the work is carried out in France, and all of the sales are done to France, then with 99,9% probability there will be a permanent establishment in France and all of the profits on these fully French operations will be taxable in France. --- Title: Here’s Why Tax Evaders Are Disappointed in Estonian E-Residency Author: Dmitri Jegorov Tags: readwise, articles date: 2024-01-30 --- # Here’s Why Tax Evaders Are Disappointed in Estonian E-Residency ![rw-book-cover](https://readwise-assets.s3.amazonaws.com/static/images/article3.5c705a01b476.png) URL:: https://medium.com/e-residency-blog/heres-why-tax-evaders-are-disappointed-in-estonian-e-residency-2322644f5f59 Author:: Dmitri Jegorov ## AI-Generated Summary None ## Highlights > our tax rate on distribution is 20% on sporadic or 14% on regularly distributed profits (7% withholding tax adds to the latter if distributed to natural persons). > If, for example, a French entrepreneur opens a business in Estonia through e-Residency, but all of his or her physical operations are from France, the work is carried out in France, and all of the sales are done to France, then with 99,9% probability there will be a permanent establishment in France and all of the profits on these fully French operations will be taxable in France.