2019

2018

Threshold for VAT registration (calendar year)

EUR

40,000

40,000

Threshold for cross-border digital (electronic and electronic communications) services*

EUR

10,000

-

* A 20% Estonian VAT applies when the threshold is not exceeded. If it is exceeded, the VAT rate of the member state in which the end consumer lives applies.

Flat rate of income tax to be paid or withheld on taxable income of individuals or non-residents

%

20

20

Income tax prepayments of credit institutions (paid on quarterly profits)

%

14

14

Reduced rate of corporate income tax on regularly distributed profits

14/86

-

Income tax to be withheld if recipients of dividends are individuals and when distributing the profits, the resident entity paid a reduced rate of corporate income tax

%

7

7

Reduced rate of income tax (disbursements from third pillar, royalties and service fees paid to non-residents)

%

10

10

Income tax rate on taxable payments of entities (dividends, gifts etc)

20/80

20/80

Overall tax-free income (basic exemption) of a resident individual per calendar year

EUR

6,000…0

6,000…0

6,000 if annual income is up to 14,400

If annual income exceeds 14,400, the basic exemption drops according to the formula: 6,000 – 6,000 / 10,800 x (income – 14,400)

0 if annual income exceeds 25,200

Annual additional exempt allowance for parents (starting from second child)

EUR

1,848

1,848

Annual additional exempt allowance for spouse if certain conditions are met

EUR

2,160

2,160

Exempt rate of birth allowance paid by employer (single payment)

EUR

2,500

2,500

Combined annual deduction rate for housing loan interest, education expenses and charitable donations per individual

EUR

1,200

1,200

incl. EUR 300 on housing loan interest capped at 50% of income