We offer an overview of current tax rates in Estonia in 2021.
Value added tax
|
Threshold for VAT registration
|
|
|
|
Taxable supplies per year
|
EUR
|
40,000
|
|
Cross-border digital services
|
EUR
|
10,000
|
Income tax
|
Fixed rate (charged on income of individuals and non-residents)
|
%
|
20
|
|
Corporate tax rate on entities’ taxable income (dividends, gifts)
|
%
|
20/80
|
|
Reduced corporate tax rate on regular distribution of profit
|
%
|
14/86
|
|
Exempt personal minimum per calendar year
|
|
|
|
- income of up to EUR 14,400
|
EUR
|
6,000
|
|
- income of EUR 14,400–25,000
|
|
6,000 – 6,000 / 10,800 x (income – 14,400)
|
|
- income over EUR 25,000
|
|
0
|
|
Parent allowance per year
|
|
|
|
- for second child
|
EUR
|
1,848
|
|
- for third and each subsequent child
|
EUR
|
3,048
|
|
Exempt childbirth benefit for employee (single payment that may be made by employer)
|
EUR
|
2,500
|
|
Total annual allowance for home loan interest, education and medical expenses
|
EUR
|
1,200 (incl. EUR 300 of loan interest, not to exceed 50% of income)
|
|
Exempt contributions to tier 3 pension
|
EUR
|
6,000 (capped at 15% of income)
|
Social tax
|
Rate
|
%
|
33
|
|
Taxable income
|
EUR
|
584
|
|
Minimum employer liability
|
EUR
|
192.72
|
Social insurance contributions
|
Employer contributions for unemployment
|
%
|
0.8
|
|
Employee contributions for unemployment (deducted by employer)
|
%
|
1.6
|
|
Mandatory contributions to tier 2 pension (funded pension)
|
%
|
2
|
Wages and fringe benefits
|
Minimum wage
|
EUR
|
584
|
|
Minimum hourly rate
|
EUR
|
3.48
|
|
Foreign business trip exempt daily allowance (up to 15 days a month)
|
EUR
|
50
|
|
Private car use for business purposes
|
EUR
|
0.30/km (capped at EUR 335 a month)
|
