Taxes Levied upon Estonian Companies

If the company has employees (is subject to salary taxes):

• Minimum salary in 2020 – 584 EUR per month brutto
• In 2020, the tax-free minimum in Estonia is 500 EUR
• Income tax for private person – 20%
• Social tax – 33% (in 2020, the minimum social tax is 178,20 EUR)
• Funded pension – 2% depending on the chosen stage
• Unemployment insurance – 1.6% paid by the employee and 0.8% paid by the employer – 2.4% in total

Let us make an example with minimum salary in Estonia:

If you want your employee to get 550,38 EUR after taxes, your company shall pay:

• Social tax (33%) – 192,72 EUR
• Unemployment insurance (0.8%) – 4,67 EUR

The employee shall pay:

• Income tax (20%) – 12,60 EUR
• Pension tax (2%) – 11,68 EUR
• Unemployment insurance (1.6%) – 9,34 EUR