Income from employment
The concept of income from employment covers remuneration paid on the basis of an employment contract and employment in public service and service fees paid on the basis of a contract for services, authorisation agreement or any other contract under the law of obligations and remuneration paid to members of the management or control body of legal entities. Employers withhold income tax on income from employment, pay social tax and, in most, cases unemployment insurance premiums and mandatory funded pension contributions.
Read moreEnvelope wages
Envelope wages are the wages on which taxes are not paid. Employees who accept envelope wages will be deprived of the social guarantees that they would be provided with in the case of legally paid wages.
Read morePension and insurance indemnities
The Estonian pension system consists of three pillars: the first pillar is state pension, the second pillar is mandatory funded pension and the third pillar is supplementary funded pension. The second and third pillars operate based on the principle of savings collection by a person. It is also possible for a person to conclude a life insurance contract with investment risk.
Read moreIncome from platform work
The income earned through a platform (including an app) is taxable and there are different ways to meet the tax liability. Active income generated by a person’s activities (e.g. food couriers, drivers) is subject to all labour taxes. Income from rent and commercial lease (e.g. accommodation) arising from the grant of use of property is subject to income tax only.
Read moreScholarships and grants, benefits, awards
There are different principles for the application of tax exemption to scholarships and grants, benefits or awards. Below we are explaining the substantial differences between the payments mentioned.
Read moreInterest
Interest received from a loan, bond, security, deposit or other debt obligation is income subject to income tax.
Read moreIncome from lease and rent, licence fees
Income from lease and rent as well as licence fees are taxable with income tax.
Read moreTransfer of immovable property
When selling or exchanging land, house or apartment, the question arises – whether income tax is payable on the gains received. If so, how and when to declare the gains and how the tax amount is calculated. You can find answers to these questions in the following guide.
Read moreCrypto-assets
Overview of how crypto-assets are taxed and declared in the most common income-earning scenarios.
Read moreSecurities and investment account
A natural person can invest in securities in the ordinary system, in the investment account system or through a pension investment account.
Read moreForest cutting right and timber
Here you can find an overview of the taxation of income from the transfer of cutting right or timber or from the Natura 2000 support for private forest land. Depending on the circumstances and conditions under which timber is transferred or Natura 2000 support granted, the income received is taxed either as business income or as gains from transfer of property.
Read moreOther types of income
Income means a person’s non-repayable income, as a result of which a person’s assets increase. The concept of income also includes income generated through the so-called sharing economy (e.g. ridesharing, home accommodation).
Read moreBusiness income
Business income is taxable with income tax, social tax and, in the case of an obligated person with contribution to mandatory funded pension.
Read moreEntrepreneur account
Entrepreneur account is a bureaucracy-free and affordable opportunity for private persons to act as an entrepreneur without worrying about financial reports, monthly tax returns and paying taxes – all of this is done automatically based on the entries on the entrepreneur account. Currently, entrepreneur accounts can only be opened at the LHV Pank.
Read moreIncome derived in a foreign state
Estonian resident must declare in Estonia all income he or she has derived outside Estonia. The taxation of foreign income in Estonia depends on whether you are a resident in Estonia, the type of income and the length of time spent working in a foreign country and from which country is the payer.
Read moreLast updated: 02.06.2021
