Tax rates in Estonia
Income tax
Decrease of the income tax rate:
- Until the year 2004 - 26%
- Income of the year 2005 - 24%
- Income of the year 2006 - 23%
- Income of the year 2007 - 22%
- Income of the year 2008 - 21%
- Income of the year 2009 - 21%
Period of taxation for natural persons is a calendar year.
In Estonia, annual basic exemption (non-taxable amount) per year is
- Income of the year 2000 - 9 600 EEK
- Income of the year 2001 - 12 000 EEK
- Income of the year 2002 - 12 000 EEK
- Income of the year 2003 - 12 000 EEK
- Income of the year 2004 - 16 800 EEK
- Income of the year 2005 - 20 400 EEK
- Income of the year 2006 - 24 000 EEK
- Income of the year 2007 - 24 000 EEK
- Income of the year 2008 - 27 000 EEK
- Income of the year 2009 - 27 000 EEK
The moment of corporate income taxation is shifted until the distribution of profits in Estonia. Period of taxation for legal entities and non-residents with registered permanent establishments in Estonia is one calendar month.
Decrease of the corporate income tax rate in Estonia:
- Until the year 2004 - 26/74 of the net amount (equals to 26% of gross profit)
- Distribution in the year 2005 - 24/76
- Distribution in the year 2006 - 23/77
- Distribution in the year 2007 - 22/78
- Distribution in the year 2008 - 21/79
- Distribution in the year 2009 - 21/79
…of the net amount.
Unemployment insurance premiums
Until 1 May 2009, an unemployment insurance premium has been withheld at a rate of 0,6%, employers rate has been 0,3%.
Funded pension payment
A funded pension payment is withheld at a rate of 2% of the gross salary of the employee. Funded pension payments are not withheld from payments made from 1 June 2009 until 31 December 2009.
July 2009