Income tax rate:
Period of taxation for natural persons is a calendar year.
In Estonia, annual basic exemption (non-taxable amount) per year is:
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:
…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 Until Employee Employer
01.01.2015 1,6 0,8
01.01.2013 31.12.2014 2 1
01.08.2009 31.12.2012 2,8 1,4
01.06.2009 31.07.2009 2 1
31.05.2009 0,6 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 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.
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.