TAXES LEVIED UPON ESTONIAN COMPANIES

  • Corporate tax – 0%
  • Dividend tax – 25%
  • VAT – 20% (if the company is VAT number holder)

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

The total amount of taxes will be 231,01 EUR so that employee will receive 550,38 EUR after taxes.

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