- Corporate income tax – 0%
Corporate profits are not taxed in Estonia, only distributed profits are taxed.
- Income tax on distributed profits – 22%
20% until 31.12.2024
22% from 01.01.2025
Corporate income tax 20/22% is paid from distributed profit. Shareholders receive 80/78%.
- Private person income tax – 22%
20% until 31.12.2024
22% from 01.01.2025
Private person income tax is based on gross income and is deducted from the income.
- VAT – 24%
22% until 30.06.2025
24% from 01.07.2025
- Social security tax – 33%
Social security tax is from gross income and is paid on top of salary by employer.
- Unemployment tax 1.6+0.8%
1.6% for employer
0.8% for employee
Unemployment tax is calculated based on gross salary. The employer pays 0.8% on top of the salary, and 1.6% is deducted from the employee’s salary.
- Tax-exempt income – 8400/year
12 x 700 = 8 400 EUR/year
Deadlines
- Income and social tax returns
Tax returns and tax payments must be done the 10th date of the next month.
- VAT returns
VAT returns and tax payments must be done the 20th date of the next month.
- Annual reports
Annual reports must be submitted within 6 months after the end of the fiscal year. Usually, it means by June 30th.