[vc_row][vc_column][vc_column_text]The board member of an Estonian enterprise is a foreigner. If he obtains a temporary residence permit in Estonia with the right to work and wishes to receive remuneration (wages or dividends), what taxes should be paid? Was it true that non-taxable income and compulsory contributory pension contributions were excluded? Are there any other particularities that we should be aware of?
If a board member expects to be in Estonia for a period of at least 183 consecutive calendar months, he must register with the Tax and Customs Department as a tax resident from the day of arrival in Estonia, and then the tax of his remuneration can be applied to the tax of non-taxable income.
Income tax, compulsory contributory pension contributions should be deducted from the remuneration of a member who is a resident of Estonia, if he joins the second pension, and social tax should be paid.
If a member of the board is not in Estonia for at least 183 days during 12 consecutive calendar months, the amount paid to him shall be subject to income tax in accordance with article 29 of the Income Tax Act. Remuneration of a non-resident for work or service performed on the basis of a contract of obligations or an employment contract is taxed in Estonia as long as the work or service was performed in Estonia.
Since the seat of the board member is an enterprise registered in Estonia, the board member should be paid income tax and social tax. In this case, he is not entitled to a deduction of income tax-free income.
If a non-resident employee performs tasks not related to the management of the enterprise on the basis of an employment contract, the income tax and social tax will depend on whether he is in Estonia or abroad in the performance of his duties (In Estonia only income derived from work performed in Estonia is taxed).
LKS Consult OĂś offers full accounting support to non-residents when declaring their income in Estonia. Contact our specialist and get a price offer as soon as possible.[/vc_column_text][/vc_column][/vc_row]
[vc_row][vc_column][vc_column_text]The trade of cryptocurrency is gaining in popularity, and buyers may wonder: do cryptocurrency taxes have to be paid, and if so, when? The Tax and Customs Department of Estonia clarifies this issue as follows:
In summary, the tax obligation arises in three cases:
When converting cryptocurrency to ordinary currency;
The exchange of a cryptocurrency for another cryptocurrency;
Using cryptocurrency to pay for goods and services.
In the case of cryptocurrency, only transactions with income are taxed, and each transaction should be evaluated separately.
Earned income is the difference between the acquisition value and the sale price of the cryptocurrency. In this case, the purchase price or the income generated should be converted to euros, taking into account the exchange rate of the cryptocurrency in effect on the date of receipt of the income or expenditure. If the transaction was made on market terms, the exchange rate in the transaction environment may be used. If, however, the euro is not used in the transaction environment, the income should be converted.
Exchange of one cryptocurrency for another should also be based on market price and earned income, that is, profit.
When paying for goods or services by cryptocurrency, you should calculate the earned income, that is, the difference between the price of the received good or service and the cryptocurrency used.
It is important to note that the conversion of cryptocurrency and previously taxable income (e.g., wages, dividends, members of the board) in the ordinary currency, or the use of such income to purchase various goods and services, does not entail additional tax liability: for example, if the electronic wallet containing the cryptocurrency person receives from the mutual partnership X a wage of 0 for February,05 bitcoin, declared by the enterprise and with which labour taxes have already been paid on the basis of the market price. If a person has used a salary in his electronic wallet of 0.05 bitcoin to purchase various goods and services, he is not obliged to declare it.
If an individual is engaged in the development of a cryptocurrency, the proceeds should be declared as business income. The development of a cryptocurrency is an entrepreneurial activity and is taxed on the same basis as the production of a commodity. The tax obligation arises from the benefit derived from the alienation of the cryptocurrency at the time of its sale or exchange. A person who continuously develops a virtual currency must register with the Business Register and act as an individual entrepreneur (FIE) or through a business partnership. A registered FIE may deduct from business income and also declare expenses incurred in generating business income (for example, equipment, electricity, etc.). An individual may not deduct from income expenses incurred to generate income from the development of a cryptocurrency. FIE should point out that cryptocurrency cannot be credited to a special account used to defer tax duties. In addition, it is possible to invest in cryptocurrency through a commercial partnership, in which case the taxation rules applicable to a commercial partnership should be taken into account.
[vc_row][vc_column][vc_column_text]According to the summary report of the Development Monitoring Center “Property taxes in Estonia and European countries”, Estonia is the country with the lowest property taxes in the European Union. If property taxes were to reach the EU average, it would bring in more than 500 million per year.
“Estonia’s tax system is based mainly on taxes on labor and on taxes on consumption. At the same time, property taxes are less used to finance public expenditure, said Magnus Pieritz, an expert from the Development Monitoring Centre. — In EU countries, property taxes account for about 5 per cent of total tax revenue. If property taxes in Estonia were to reach the EU average, in 2019 this would mean that revenues to the state budget would be more than 530 million euros more”.
Property taxes include taxes on real estate, net assets, inheritance and gifts, as well as taxes on financial transactions and capital transactions, such as transactions in securities and shares of enterprises. According to Pieritz, in many EU states (including Estonia), most property taxes consist of property taxes.
In Estonia, the main property tax is the land tax, which is paid to local governments. “ For example, real estate taxes accounted for 0.6% of all tax revenues in Estonia in 2019. The average in the European Union was 3 per cent. Since 2012, the land tax in Estonia has remained in the range of 60 million euros per year”, noted Pieritz.
According to Magnus Pieritz, changes in Estonia’s tax structure are inevitable in the future. “ In view of the shrinking of the working-age population, the development of digital technologies and changes in forms of work, labor taxes can no longer effectively cover public expenditures. If the costs remained the same or increased, it would be necessary to find a way to cover those costs”, he added.
According to Pieritz, when speaking of global trends, it is important to bear in mind that in recent decades the world has become more unequal in terms of wealth. “ As much as 45 percent of the estate goes to the top 1 percent. The printing of money by central banks also exacerbates inequality, as it increases property prices”.
In addition, the fight against concealment of property is being strengthened through new info-technology solutions and more effective cooperation between countries. “ This is becoming a fertile ground for wider application of property taxes. On the other hand, new asset classes are emerging, such as cryptocurrency, whose value is very difficult to value,” added Pieritz.
One of the research areas of the Development Monitoring Center in 2021 is “Tax structure that will stand the test of time”. In the study, the authors consider how to cover the costs of an ageing society and how to change the tax system over the next 15 years.
The Development Monitoring Center is a research center established in the Riigikogu Office, which analyses the long-term prospects of society and the economy. The Center conducts research projects to analyse long-term trends in Estonian society and to identify new trends and development directions.
Accounting services in Estonia
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[vc_row][vc_column][vc_column_text]Estonia currently offers one of the most convenient tax systems in the world. The active support of the state to small businesses has made Estonia a European center of entrepreneurship.
All business processes can be tracked online (company registration, filing of declarations, communication with state authorities).
Income tax on legal person – 20/80, applies to income distributed as a dividend
Income tax for legal person – 14/86, applies to regularly distributed dividend profit
Social tax – 33%, minimum social tax – 192.72 euros per month
Insurance against unemployment:
for an employee – 1.6 per cent,
or employer – 0.8 per cent
Cumulative pension – 2% if no application for suspension of contributions is filed
Three rates of turnover tax 20%/9%/0
Minimum wage
C 1.01.2022 minimum wage for full-time work is EUR 654 per month or EUR 3.86 per hour.
Accounting for tax-free income of a resident of Estonia
If the annual income is up to €14,400, the tax-free income will be €6,000 per year.
If the annual income is between €14,400 and €25,200, the non-taxable income is calculated by the formula.
If the annual income is 25,200 euros, the tax-free income will be zero.
Annual income includes:
Wages (both in Estonia and abroad)
Dividends (both regular rate and simplified rate)
Dividends not subject to income tax in Estonia
Other income taxable (both in Estonia and abroad)
Accounting for non-taxable income of non-resident in Estonia
A non-resident of Estonia, if he is a resident of a State party to the Agreement of the European Economic Area, is entitled to tax-free income in the same way as a resident of Estonia.
For the application of the non-exhaustive minimum, it is necessary to provide:
Statement
Certified Resident Certificate
A non-resident of Estonia, if he is a resident of a State not party to the Agreement of the European Economic Area, is not entitled to tax-exempt income.
States Parties to the Agreement of the European Economic Area:
[vc_row][vc_column][vc_column_text]The Estonian taxation system is one of the most profitable in the world. It includes state and local taxes. A tax is a financial obligation that the law imposes on a taxpayer and is enforceable in the manner, amount and duration prescribed by law. The taxpayer is obliged to pay only the state and local taxes prescribed by law.
There are many statutory preferential business opportunities in Estonia. Here is one of them, which is unique in its financial and legal nature in comparison with other EU countries. According to the Estonian legislation, at the time of the company establishment there is no need to contribute its share capital (from 2,500 EUR). The articles of incorporation determine the period for the authorised capital to be contributed, which can be set from a year up to a date of payment of dividends. It should be considered that while the share capital is not contributed, the owner (founder) is personally liable with their unauthorised funds in the share capital.
Taxes in Estonia are administered by the Estonian Board of Taxes and Customs. A large proportion of tax returns are available via the Internet.
Rates
Private person income tax on retention rate — 20%.
The income tax rate of a legal entity applied to dividends of profits is 20/80. The income tax rate of a legal entity, which is applied to a regularly distributed profit dividend, is 14/86, and income tax is withheld at a rate of 7 per cent in addition to dividends paid to an individual.
The amount of income tax-free depends on the income received (up to EUR 500 per month and up to EUR 6,000 per year).
The social tax rate is 33%. The monthly rate on which the minimum social tax obligation is based is 584 euros; respectively, the minimum social tax duty is 192.72 euros per month.
According to the Social Tax Act, social tax is paid by:
resident legal person
a natural person
a non-resident who has a permanent place of business in Estonia or who makes payments
the establishment of a State, a municipality or a city
the State, a municipality or a city in cases specified in article 6 of the Social Tax Act.
VAT
Value Added Tax – VAT, levied on goods and services sold in business activity, imports of goods from non-EU countries, and purchases of goods from countries of the EU. The final consumer pays Value-added tax.
Companies are obliged to register a VAT number when sales in Estonia exceed 40,000 EUR from the beginning of the calendar year. A company can also apply for VAT registration before this threshold value is reached.
If sales do not exceed 40,000 EUR in Estonia, VAT payers can be registered on a voluntary basis.
Obligations
As a sales taxpayer, you must:
When selling a good or providing a service, add a sales tax to the sales price; Keep a record of turnover tax
Calculate and pay the sales tax
Keep the documents relating to the transactions and issue the appropriate invoices
From the taxable turnover, you can deduct the turnover tax (turnover input tax) paid on the purchase of a good or service used for the purposes of the taxable turnover.
According to the Estonian regulations, the total rate of turnover tax is 20 per cent of the taxable value of the good or service.
The specialists of LKS Consult OÜ  will be happy to assist you with accounting services for your Estonian company.[/vc_column_text][/vc_column][/vc_row]
The Estonian legislation offers its residents a very interesting tax system. Cooperation with Estonian companies can be advantageous in many areas of activity, for example in the delivery of goods from/to EU countries, when registering as a holding company. Look in more detail at Estonian taxation and the possibilities of companies from this state.
Estonia is well known for the friendly attitude of officials towards business and developed digital infrastructure. Almost all business processes can be controlled online – register a company, file reports, ask questions to public services, etc. It also attracts moderate prices for business support.
Taxes in Estonia are administered by the Estonian Board of Taxes and Customs. A large proportion of tax returns are available via the Internet.[/vc_column_text][vc_column_text css=”%7B%22default%22%3A%7B%22margin-top%22%3A%2210px%22%7D%7D”]Main tax advantages:
There is no tax on retained earnings
Profit tax is paid only when a company decides to distribute dividends to its owners Corporate tax rate on allocated profits is 20% (14% may be applied in some cases since 2020)
The VAT rate for certain goods and services is 0% and 9%
Standard VAT rate is 20%
Double taxation treaties with 60 countries worldwide, including Belarus and Ukraine
Corporate tax
In Estonia, income tax is 0%, which means there is no need to pay corporate tax on income earned. Instead, corporate taxes are paid distributing company profits — for example, when paying out dividends to shareholders — or other taxable payments.
Estonia’s corporate income tax is paid only after dividends (interest, royalties, etc.) have been distributed. That is, all retained profits of the company are exempt from tax. The tax is deferred until the profit is considered as distributed. After distribution, profits are taxed at 20% of the net amount.
It is worth noting that since 2018 the income tax for enterprises in Estonia is reduced to 14%. This applies to companies that regularly distribute profits. Payment of dividends in Estonia in an amount that is less than or equal to the number of taxable dividends paid during the previous three years will be taxed at a rate of 14%. If the average is exceeded, the tax will be 20%. If the beneficiary of the dividend is a natural resident or non-resident, the rate is 7 per cent.
Some domestic and foreign taxes may be applied to corporate income tax under domestic laws or double taxation agreements. Some distributions are exempt from such a tax:
Dividends obtained from Estonian, EU, EEA or Swiss tax resident companies in which the Estonian company owns at least 10% of the shares;
Profits obtained through a permanent establishment in the EU, the EEA or Switzerland; Profits earned through foreign missions in all other countries, provided that such profits are taxed in the country of the mission;
Dividends obtained from all other foreign companies in which the Estonian company owns at least 10 per cent of the shares, provided that the main profits were subject to foreign tax or the foreign income tax was withheld from the dividends received; Liquidation proceedings, repurchase of shares or reduction of capital, which are taxable by the distributor of such proceeds;
Dividends paid by Estonian companies to non-resident legal entities (including companies with «low tax jurisdictions»).
[vc_row][vc_column][vc_column_text]The Estonian taxation system is one of the most profitable in the world. It includes state and local taxes. A tax is a financial obligation that the law imposes on a taxpayer and is enforceable in the manner, amount and duration prescribed by law. The taxpayer is obliged to pay only the state and local taxes prescribed by law.
Taxes in Estonia are administered by the Estonian Board of Taxes and Customs. A large proportion of tax returns are available via the Internet.
Basic rates
Income tax on retention rate — 20%.
The income tax rate of a legal entity applied to dividends of profits is 20/80. The income tax rate of a legal entity, which is applied to a regularly distributed profit dividend, is 14/86, and income tax is withheld at a rate of 7 per cent in addition to dividends paid to an individual.
The amount of income tax-free depends on the income received (up to EUR 500 per month and up to EUR 6,000 per year).
The social tax rate is 33%. The monthly rate on which the minimum social tax obligation is based is 584 euros; respectively, the minimum social tax duty is 192.72 euros per month.
Social tax is levied to obtain the income necessary for State pension and health insurance, from payments made in the context of an employment or service relationship, from payments made in favour of a member of the management or control body of a legal entity, Payments made under a contract of obligations concluded for the provision of services to an individual, as well as special benefits and income tax paid from that place. In such cases, the payer of the social tax is the person who makes the payment, and the tax period is the calendar month.
Unemployment insurance rates: 1.6 per cent for the worker and 0.8 per cent for the employer.
The compulsory cumulative pension payment rate is 2 per cent.
In calculating the December 2020 payroll and other payments and calculating the taxes (payments) accrued/withheld, it should be borne in mind that taxes are calculated on a cash basis.
While working with us, our clients quite often need some professional advice and help. For these purposes, LKS Consult OÜ has developed the tax advisor service.
Advice is provided in order to give an overview of taxation in case of international transactions arising in the course of your Estonian company’s activity. The exact scope and cost of advice depends on your query.
International companies shall be aware of taxation and laws in the countries of activity. We will be happy to advise you on issues related to taxation, tax agreements, and potential risks that may arise during your company’s operation.
Issues that may be addressed when getting advice:
Taxation of an Estonian company
Tax agreements between Estonia and other countries
Analysis of the identification of potential operational risks
Taxation of dividends and other income
Cross-border VAT rules
Taxes arising in different countries
Advice procedure:
Send us your questions so that we can determine the scope and cost of advice.
Get a quote from us.
Select the time, language and format of consulting (by phone, via Skype, at our office)
[vc_row][vc_column][vc_column_text]The income tax does not apply to the income derived from the alienation of a dwelling which, prior to the alienation, the taxpayer used as his place of residence (article 15, part 5, paragraph 1, of the Income Tax Act (Act on Income Tax)). For the application of tax exemption, the law provides an additional condition: tax exemption applies to only one transaction for two years (article 15, part 6, of the Act).
In taxation, the tax administrator applies equal taxation if the place of residence is alienated and:
In the serf book, both the dwelling and the storage and parking space related to the dwelling are listed as one apartment property,
In the serf book, both residential premises and a storeroom (non-residential premises) and a parking space (non-residential premises) are included as independent apartment property.
If the storeroom and parking space registered as independent housing units are disposed of together with the living space in one sale, then the tax exemption on the sale of residence is applied to the entire transaction, subject to a limitation of one transaction for two years.
If non-residential premises (storage space or parking space) are sold separately (another transaction) from the dwelling (before or after the alienation of the dwelling) or if the storage space or parking space is not used as part of the dwelling, a is used for commercial purposes (for example, for hire or use in business), in which case the sale is taxable.
 Share of a perfect flat
If a portion of the ideal share relating to the real part is expropriated (for example, to increase the real part of the apartment property or to create a new apartment property), then the transfer for payment is taxed, i.e. the ideal share of the land, Parts of a building or equipment shall not be treated separately as taxpayer living space.
These parts of the apartment property are not part of the real part of the apartment property (part of the apartment building of the taxpayer), but are the ideal parts of the shared ownership of the apartment house connected to the real part.
Guest apartment
A guest apartment is a hotel enterprise in which the hotel unit is an apartment leased in full (article 18, part 8, of the Tourism Act). The guest apartment is used for commercial purposes, therefore does not apply to the guest apartment tax exemption.
The Law of Obligations distinguishes between residential and commercial premises and essentially excludes the use of residential premises as commercial premises and vice versa. In the sense of the Law on Obligations, a dwelling is a dwelling house or apartment used for permanent residence. Commercial premises are premises used in economic or professional activities.
Unlike an ordinary apartment intended for residential use, the purpose of using the guest apartment is commercial. If the taxpayer did use the guesthouse as his or her place of residence prior to the alienation, and this is confirmed, then in exceptional cases tax exemption may be justified as in the case of the sale of a conventional flat, used for living.
Residential building
In this case, the income derived from the disposition of the property (the difference between the sale price and the acquisition cost) is taxed. Costs directly related to the sale (services of a notary, a broker, government fees, expenses related to the valuation of real estate, etc.) can be deducted from the profit from the sale of real estate. The actual amounts paid for the acquisition, replenishment and improvement of a property are recorded as the acquisition cost. Costs incurred by another person or expenses incurred for another person are not included as acquisition value. The purchase of the property is supported by a serf book. The property received as a gift has no acquisition value.
[vc_row][vc_column][vc_column_text]The Estonian legislation offers its residents a very interesting tax system. Cooperation with Estonian companies can be advantageous in many areas of activity, for example in the delivery of goods from/to EU countries, when registering as a holding company. Look in more detail at Estonian taxation and the possibilities of companies from this state.
Income tax is divided into income tax on natural persons and income tax on enterprises (income tax on a legal person is also paid for permanent employment of non-residents and all employers providing unique benefits). In addition to paying the income tax on the enterprise, you are also obliged to withhold the employee’s payments and pay the income tax to the Tax and Customs Department as an employer.
Rates
The income tax rate for private person earnings— 20%.
The income tax rate of a legal entity applied to dividends of profits is 20/80. The income tax rate of a legal entity, which is applied to a regularly distributed profit dividend, is 14/86, and income tax is withheld at a rate of 7 per cent in addition to dividends paid to an individual.
The amount of income tax-free depends on the income received (up to EUR 500 per month and up to EUR 6,000 per year).
If payment is made in one month:
up to 1,200 euros, then tax-free income is 500 euros
between 1,200 euros and 2,100 euros, then tax-free income is applied in the amount calculated according to the formula 500 – 500 – 900 (1,200)
over 2100 euros, then the tax-free income is zero.
Individual persons
If you conduct business as an individual entrepreneur, you must pay income tax on income from business activities, from which business expenses are deducted. The income tax rate for individual entrepreneurs is 20 per cent. The tax period is a calendar year; as an individual entrepreneur, you must declare income once a year. The tax return must be filed by 30 April of the year following the tax period.
If you have received taxable income for the previous period, you must pay the advance income tax by 15 September and 15 December. The advance payment is 25 per cent of the income tax calculated on business income in the previous tax period.
Employees
Personal income is also taxed. The person making the payments must withhold and pay income tax on the employees’ gross salary, additional fees, bonuses, holidays, and other benefits that are considered to be waged.
The personal income tax rate for 2021 is 20 per cent. A single, non-taxable income of €6,000 per year or €500 per month is applied to all earnings. The additional non-taxable income from pensions and compensation for industrial accidents is lost.
If the employee has submitted to the person making the payment (employer) a declaration of the application of the tax-exempt income, you may deduct the permissible tax-free income for the calendar month before calculating the withholding income tax.
In addition to the income tax, it is necessary to deduct from the income of the employee the payments for compulsory cumulative pension and payments for unemployment insurance. It is also necessary to pay a social tax on the gross salary of the employee.
Exceptions
Any commercial organization that is a resident of Estonia is obliged to pay a tax on profits in the form of dividends or other contributions, regardless of the form of payment. No tax is levied on profits distributed in the form of a stock issue.
Dividend profits may be exempt from income tax if the following conditions are met:
Dividends were obtained from a commercial partnership that falls under the tax system of another country where it has already paid its income tax (the exception is for low-tax countries) and less than 10% of the shares of this commercial partnership are owned by a resident of Estonia.
Dividends are accrued on the basis of profits which belong to the resident’s place of permanent activity if he is located in one of the treaty countries or Switzerland.
Dividends are obtained from a company outside the scope of p. 1 but also under the jurisdiction of another State. At the time the dividends are received, the Estonian resident must own at least 10% of the shares or votes of the company, and income tax has already been deducted from the dividends.
Dividends are paid from profits that belong to a place of active business partnership in a foreign country, and these profits are already taxed on turnover.
[vc_row][vc_column][vc_column_text]According to Treasury Minister Kate Pentus-Rosemannus, the income tax rate could be reduced to between 13 and 15 per cent, with all income tax going to local governments. The Minister asserts that this will help to reduce taxes on labour and facilitate local government funding for care.
Pentus stated that labour taxes in Estonia are too high, but at the same time health and social costs have to be covered in an ageing population.
“This can be done by reviewing the tax system as a whole, rather than pecking individual taxes,” wrote by Pentus-Rosemonnus in social networks. The care and funding of older persons is a major concern. As Pentus-Rosemonnus noted, instead of proposing a tax to pay for care services, the problem had to be addressed before the collapse of the second pension.
“Financing care services is only a part of the growing costs of social services and health care associated with population ageing and requiring a holistic approach”, she noted.
According to the Minister of Finance, it would be possible to finance the care service by increasing the share of income tax paid to the local government at the taxpayer’s place of residence, while eliminating the share paid to the State.
“We could discuss how to increase the income base of local governments so that they can provide their people with care for the elderly and cover the growing burden without introducing a new tax. One option – to increase the income of local governments through the State’s share of income tax” – explained Pentus-Rosemannus.
Pentus-Rosemannus also believes that with rising health-care costs, in addition to revising the tax system, there is a need to increase investment in mental health.
LKS Consult OĂś provides accounting services and legal advice on taxation. Please contact us and present your enquiry.[/vc_column_text][/vc_column][/vc_row]
The board member of an Estonian enterprise is a foreigner. If he obtains a temporary residence permit in Estonia with the right to work and wishes to receive remuneration (wages or dividends), what taxes should be paid? Was it true that non-taxable income and compulsory contributory pension contributions were excluded? Are there any other particularities that we should be aware of?
The trade of cryptocurrency is gaining in popularity, and buyers may wonder: do cryptocurrency taxes have to be paid, and if so, when? The Tax and Customs Department of Estonia clarifies this issue as follows:
According to the summary report of the Development Monitoring Center “Property taxes in Estonia and European countries”, Estonia is the country with the lowest property taxes in the European Union. If property taxes were to reach the EU average, it would bring in more than 500 million per year.
The Estonian taxation system is one of the most profitable in the world. It includes state and local taxes. A tax is a financial obligation that the law imposes on a taxpayer and is enforceable in the manner, amount and duration prescribed by law. The taxpayer is obliged to pay only the state and local taxes prescribed by law.
Estonia is well known for the friendly attitude of officials towards business and developed digital infrastructure. Almost all business processes can be controlled online – register a company, file reports, ask questions to public services, etc. It also attracts moderate prices for business support.
The Estonian taxation system is one of the most profitable in the world. It includes state and local taxes. A tax is a financial obligation that the law imposes on a taxpayer and is enforceable in the manner, amount and duration prescribed by law. The taxpayer is obliged to pay only the state and local taxes prescribed by law.
The income tax does not apply to the income derived from the alienation of a dwelling which, prior to the alienation, the taxpayer used as his place of residence (article 15, part 5, paragraph 1, of the Income Tax Act (Act on Income Tax)). For the application of tax exemption, the law provides an additional condition: tax exemption applies to only one transaction for two years (article 15, part 6, of the Act).
The Estonian legislation offers its residents a very interesting tax system. Cooperation with Estonian companies can be advantageous in many areas of activity, for example in the delivery of goods from/to EU countries, when registering as a holding company. Look in more detail at Estonian taxation and the possibilities of companies from this state.