Prior to the UK`s exit from the EU, no income tax was levied on royalties paid to a taxable person established in the UK for related persons (subsection 31(4) of the Income Tax Act). In accordance with Article 50(3) TEU, the Treaties shall cease to apply to the State concerned from the date of entry into force of the Withdrawal Agreement or, if that is not the case, two years after notification, unless the European Council decides, in agreement with the Member State concerned, to extend that period. The withdrawal of the United Kingdom from the EU has no influence on the agreement between Estonia and the United Kingdom of Great Britain and Northern Ireland to avoid double taxation of income tax. .