{"id":2093,"date":"2013-03-24T18:58:02","date_gmt":"2013-03-24T16:58:02","guid":{"rendered":"http:\/\/revalhansa.ee\/?page_id=2093"},"modified":"2018-10-21T18:22:30","modified_gmt":"2018-10-21T15:22:30","slug":"overview-of-taxes-in-estonia","status":"publish","type":"page","link":"https:\/\/revalhansa.ee\/en\/accounting\/overview-of-taxes-in-estonia\/","title":{"rendered":"Overview of taxes in Estonia"},"content":{"rendered":"<p><strong>Overview of taxes in Estonia<\/strong><\/p>\n<p><span style=\"text-decoration: underline;\">Taxes on salaries<\/span><\/p>\n<ul>\n<li>20% withheld personal income tax ;<\/li>\n<li>33%\u00a0social tax\u00a0;<\/li>\n<li>0,8% unemployment insurance tax (employer&#8217;s part,\u00a0changed as of 01.01.2015)\u00a0;<\/li>\n<li>1,6% unemployment insurance tax (employee&#8217;e part, changed as of 01.01.2015)\u00a0;<\/li>\n<li>2,0% pension insurance tax ;<\/li>\n<li>As of 01.01.2018 the monthly non-taxable amount is calculated on the basis of person&#8217;s yearly revenues (salaries+other revenues from rent, sales etc) and the principles are the following :\n<ul>\n<li>For the salary\/revenues up to 1200 eur per month (14400 eur per year), the non-taxable amount is 500 eur<\/li>\n<li>For the salary\/revenues between 1200 eur and 2100 eur per month (that is between 14400 eur and 25200 eur per year) the non-taxable amount is calculated as follows : 500 eur &#8211; 0,55556* (Salary &#8211; 1200 eur).<\/li>\n<li>For the salary over 2100 eur the non-taxable amount is 0 eur.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"text-decoration: underline;\">Taxes\u00a0on turnover <\/span><\/p>\n<ul>\n<li>Value added tax (VAT) is 20%, excluding exepmtions stated\u00a0(details stated in Value Added Tax Act Clause 15)\u00a0, such as\n<ul>\n<li style=\"text-align: justify;\">VAT on books, medicines and accomodation services is 9% VAT\u00a0;<\/li>\n<li style=\"text-align: justify;\">VAT on export and turnover within EU countries is 0% ;<\/li>\n<li style=\"text-align: justify;\">Postal service, healthcare services, dental services, insurance and other specific services are considered as non-VATable turnover;<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"text-decoration: underline;\">Representation expenses and expenses on special benefits<\/span><\/p>\n<ul>\n<li style=\"text-align: justify;\">Non-taxable amount of representation costs &#8211; 32 eur\/month +2% from total gross salaries. 32 eur\/month is cumulative, i.e. in case 32 eur is not used in January, the limit in February is 64 eur.<\/li>\n<li>Taxes on expenses on special benefits (expenses made for company&#8217;s employees) are 20% income tax from gross amount (from net amount the income tax\u00a0is 20\/80) +33% social tax ;\n<ul>\n<li style=\"text-align: justify;\">For example an expense of 100 euros is taxed with income tax of 25.00 eur + social tax of 41.25 eur;<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"text-decoration: underline;\">Regulations on company cars<\/span><\/p>\n<ul>\n<li style=\"text-align: justify;\">In case personal usage of a company car is not allowed, the usage is not taxed. Company has to file the info of the specific car to the databases of Estonian Road Administration (Maanteeamet, www.mnt.ee)<\/li>\n<li style=\"text-align: justify;\">In case personal usage is allowed, the usage is taxed as follows :\n<ul>\n<li style=\"text-align: justify;\">For the car which is new or up to 5 years old, the tax is KW*1,96<\/li>\n<li style=\"text-align: justify;\">For the car over 5 years old, the tax is KW*1,47.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"text-align: justify;\">The non-taxable compensation for the usage of a personal car is 0,3eur\/km and upto 335 eur\/month.<\/li>\n<\/ul>\n<p><span style=\"text-decoration: underline;\">Dividends<\/span><\/p>\n<ul>\n<li>Dividends are taxes with income tax of 20% from the gross amount. From net amount the the income tax is 20\/80 .\n<ul>\n<li style=\"text-align: justify;\">For example on a net dividend payment of 10000\u00a0eur the income tax\u00a0is 2500.00 eur;<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"text-decoration: underline;\">Taxes on net income<\/span><\/p>\n<ul>\n<li>For the time being the reinvested company&#8217;s profits are not taxed with corporate income tax.<\/li>\n<\/ul>\n<p><span style=\"text-decoration: underline;\">Taxes on penalties, tax intrests and other similar payments<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li>Penalties, tax intrests and other similar payments, which have been issued on the basis of the Taxation Act are taxed with income tax of 20%.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">Attn ! Taxes stated here in this page are only the most important ones and therefore is by any means final. For additional information please <a title=\"Contacts\" href=\"\/?page_id=327\">contact us<\/a> or visit the pages of <a href=\"http:\/\/www.emta.ee\/?lang=en\" target=\"_blank\">Estonian Tax Board <\/a>and\u00a0<a href=\"https:\/\/www.riigiteataja.ee\/tutvustus.html?m=3\" target=\"_blank\">&#8220;Riigiteataja&#8221;<\/a> (The estonian version contains the full database of Estonian Acts of Law, English version contains the translations of the most important ones).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Overview of taxes in Estonia Taxes on salaries 20% withheld personal income tax ; 33%\u00a0social tax\u00a0; 0,8% unemployment insurance tax (employer&#8217;s part,\u00a0changed as of 01.01.2015)\u00a0; 1,6% unemployment insurance tax (employee&#8217;e part, changed as of 01.01.2015)\u00a0; 2,0% pension insurance tax ; As of 01.01.2018 the monthly non-taxable amount is calculated on the basis of person&#8217;s yearly [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"parent":325,"menu_order":4,"comment_status":"closed","ping_status":"closed","template":"contactPage.php","meta":{"footnotes":""},"class_list":["post-2093","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/revalhansa.ee\/en\/wp-json\/wp\/v2\/pages\/2093","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/revalhansa.ee\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/revalhansa.ee\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/revalhansa.ee\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/revalhansa.ee\/en\/wp-json\/wp\/v2\/comments?post=2093"}],"version-history":[{"count":26,"href":"https:\/\/revalhansa.ee\/en\/wp-json\/wp\/v2\/pages\/2093\/revisions"}],"predecessor-version":[{"id":2784,"href":"https:\/\/revalhansa.ee\/en\/wp-json\/wp\/v2\/pages\/2093\/revisions\/2784"}],"up":[{"embeddable":true,"href":"https:\/\/revalhansa.ee\/en\/wp-json\/wp\/v2\/pages\/325"}],"wp:attachment":[{"href":"https:\/\/revalhansa.ee\/en\/wp-json\/wp\/v2\/media?parent=2093"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}