Estonian tax rates 2017

 

ESTONIAN TAX RATES 2017

VAT ( Käibemaks)

Standard rate

Reduced rate

20%

 

9% (medical equipment, literary and educational literature, accommodation etc.)

Corporate income tax (Tulumaks)

Standard rate

Reduced rate

Special arrangements

Tax exemptions

20% on profit distributions, dividends, gifts, fringe benefits, non-business expenditures

Corporate income tax is not applicable on undistributed profit

20%  on liquidation proceeds, share capital reductions and shares buy-back in the amounts exceeding contributions to equity

No tax  on distribution of dividends received from the EU, or if owned 10% and more shares and dividends have been taxed abroad)

Withholding taxes

Dividends

Interest

Royalties & Service Fee

Capital gains

No tax

No tax on interest ( if not exceeding market rate)

20 % on rental payments and  10 % ( excluding  payments to EU and owners of 25% and more participation) other services rendered in Estonia

20% on gains from sales of  share in company, where owned 10% and more participation and  which more than 50% of assets comprise real estate or buildings in Estonia

Taxes on workforce

Social contributions for employee

Social contributions for employer

Personal income tax for employee

Tax exemptions

1,6% of unemployment employee contribution

 

33% social tax ( but not less than EUR 141,90 per month per employee)  and 0,8% of  unemployment contribution

 

 

20% flat rate ( tax free income EUR 2,160 per year + EUR 1,848 for one parent of each children on age until 17 years starting from the second one )

 

Tax deductions for interest related to acquisition of personal residence up to EUR 300 per year plus charity education expenses and voluntary pension funds up to  EUR 1,200, but not more than 50% of taxable income.  

No income taxes and social contribution on salaries paid to tax non-residends

 

State pension income + pensions from saving funds up to EUR 2,832 per year.  

 

Compensations paid to residents for accidents at work or occupational diseaseUp to EUR 768 per year

 

 

Personal income tax on capital gains

Real estate, shares and securities

Dividends and interests

 Income from investments in private pension funds and life insurance  

20% on sales of real estate   (excluding personal residence) , rentals, shares, securities (excluding investment accounts)

Extemption: 20% income from rent of one residental property

20 % on dividends received from abroad, if these dividends or profit share have not been taxed abroad. 

20% from received interests excluding from credit institutions within EU, Norway and Lichtenstein. 

 

10% - pension funds

20% - life insurance ( excluding transfers to pension funds)

Land  tax

Object

Tax rate

 

Land

0.1% – 2.5% of cadastral value of land

Exemption: land under residential buildings up to 0,15 ha per taxpayer in urban areas and 2 ha in rural regions 

                         

 

 

Article topic: