Shareholders are not involved in everyday business activities. They’re engaged when it comes to some vital changes or dealings, for example, a change of a director.
Approximately with the same frequency, that is not really frequent, they get their money reward from the company. Directors are paid regularly (mostly monthly), and shareholders receive dividends which can be received only once a year.
It’s worth noting that under Estonian law, dividends cannot be paid out
before you have paid in the mandatory share capital in full and finished the first financial year. Having met the conditions, dividends are taxed and paid.
Shareholder’s rewards are subject to 20% corporate tax in Estonia
and likely personal income tax in a tax residence country of the shareholder as well. Director’s fee, for comparison, is taxable with 20% income tax and 33% social tax. If the director is also an employee, his salary is taxable according to a tax residence country of a person.