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Tax rates

Income tax rate:

  • Income of the year 2015 – 20%
  • Income of the year 2014 – 21%
  • Income of the year 2013 – 21%
  • Income of the year 2012 – 21%
  • Income of the year 2011 – 21%
  • Income of the year 2010 – 21%
  • Income of the year 2009 – 21%
  • Income of the year 2008 – 21% 
  • Income of the year 2007 – 22%
  • Income of the year 2006 – 23%
  • Income of the year 2005 – 24%
  • From the year 2000 until 2004 – 26%

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 2015 – 1848 EUR
  • Income of the year 2014 – 1728 EUR
  • Income of the year 2013 – 1728 EUR
  • Income of the year 2012 – 1728 EUR
  • Income of the year 2011– 1728 EUR
  • Income of the year 2010 – 27 000 EEK
  • Income of the year 2009 – 27 000 EEK
  • Income of the year 2008 – 27 000 EEK
  • Income of the year 2007 – 24 000 EEK
  • Income of the year 2006 – 24 000 EEK
  • Income of the year 2005 – 20 400 EEK
  • Income of the year 2004 – 16 800 EEK
  • Income of the year 2003 – 12 000 EEK
  • Income of the year 2002 – 12 000 EEK
  • Income of the year 2001 – 12 000 EEK
  • Income of the year 2000 – 9600 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 permanent establishments in Estonia is one calendar month.


Corporate income tax rate in Estonia:

  • Distribution in the year 2015 – 20/80
  • Distribution in the year 2014 – 21/79
  • Distribution in the year 2013 – 21/79
  • Distribution in the year 2012 – 21/79
  • Distribution in the year 2011 – 21/79
  • Distribution in the year 2010 – 21/79
  • Distribution in the year 2009 – 21/79
  • Distribution in the year 2008 – 21/79
  • Distribution in the year 2007 – 22/78
  • Distribution in the year 2006 – 23/77
  • Distribution in the year 2005 – 24/76
  • From the year 2000 until 2004 – 26/74 of the net amount (equals to 26% of gross profit)

…of the net amount.


Unemployment insurance premiums

In 2015, an unemployment insurance premium withheld is 1,6% of the gross salary of an employee.
In addition to this, employers pay the unemployment insurance premium at a rate of 0,8% of the amount of gross salaries monthly.

From 1 january 2013 until 31 December 2014, an unemployment insurance premium withheld was 2% of the gross salary of an employee.
In addition to this, employers pay the unemployment insurance premium at a rate of 1% of the amount of gross salaries monthly.

From 1 August 2009 until 31 December 2012:
an unemployment insurance premium withheld was 2,8% of the gross salary of an employee.
Employers paid the unemployment insurance premium at a rate of 1,4% of the amount of gross salaries monthly.

From 1 June 2009 until 31 July 2009, an unemployment insurance premium was withheld at a rate of 2%, employers paid the unemployment insurance premium at a rate of 1%.

Until 31 May 2009, an unemployment insurance premium has been withheld at a rate of 0,6%, employers rate has been 0,3%.


Funded pension payment
 

From 2012, a rate of a funded pension payment is 2% of the gross salary of a resident employee.
From 2014, a rate of funded pension payment withheld may be 3%, if the person has submitted such application.

In 2011, a rate of a funded pension payment depended on the employee´s decision in 2010. If an employee had decided to continue making payments in 2010, funded pension payments were withheld at a rate of 2% in 2011. In all other cases, funded pension payments were withheld at a rate of 1% of the gross salary of the resident employee in 2011. 

From 1 January 2010 until 31 December 2010, a funded pension payment was withheld only if an employee had submitted an application for continuation of making payments in 2010.

Funded pension payments were not withheld from payments made from 1 June 2009 until 31 December 2009. 

You can find further information about the Estonian system of pension payments on the website of AS Eesti Väärtpaberikeskus (Estonian CSD) http://www.pensionikeskus.ee/.

Social tax

Social tax is paid by employer in full and a general rate is  33% of the gross payment.
There  is always a minimum obligation for social tax to be paid, in 2015, it is  117,15 EUR monthly, even if there were no payments for salaried work for each employee who is entitled to 1/12 of the basic exemption with this particular employer. 

Cash-based approach

In Estonia, there is a cash-based calculation of taxes. If payment of wages for December is paid out in January, the tax rates applicable in 2015 will be used. If December wages are paid out in December, the tax rates of 2014 are applicable.

November 2014



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