|EXPATRIATE AND EMPLOYER TAX COMPLIANCE AND ADVISORY|
|Personal Income Tax Rates – Employment Income|
|Tax period||Calendar year.|
|Tax residency / Domicile according to domestic law||Person shall be treated as Estonian tax resident if:
1. Permanent place of living is in Estonia or
2. The person is present in Estonia for 183 days or more.
|Tax registration||A natural person shall fill in specific form to notify the tax authority of any circumstances related to changing his or her residency for tax purposes. Registration for payroll purposes shall be done only by employer.|
|Employment income definition||Monetary income (salaries and benefits in cash) received in the course of employment relations. Non-monetary income such as benefits in kind received by employee are taxable only on the level of employer.|
|Examples of tax exemption||Regular non-taxable minimum up to 6000 euros applicable depending of the income. Allowance for dependants (starting from at least two children) per each minor cild (1848 euros in 2020), daily allowances in case of business trips etc.|
|Specific expatriate concession||Not applicable.|
|Income of board members||Taxed similarly to employment income.|
|Tax returns||In case all taxes have been reported and paid by employer on monthly bases and there has not been any additional income, it is not obligatory to submit a tax return by the employee. In case there has been additional income or to apply the right for tax allowances and deductions, a resident natural person shall submit an income tax return to the tax authorities by 31 March of the year following the period of taxation. It is possible to submit an income tax return through the e-service of the Tax and Customs Board as of 15 February of the year following the period of taxation. Resident taxpayers who were married as at the last day of the period of taxation may submit a joint income tax return.|
|Tax payments||Generally the employer pays taxes on monthly bases. A taxpayer is required to pay any additional taxes based on the tax return not later than by 1 July of the calendar year following the period of taxation. A non-resident who derived taxable business income shall pay any additional amount of tax due into the bank account of the Tax and Customs Board within three months after the due date for submitting income tax returns.|
|Tax on real estate property|
|Employment income / income from board members||Art 15/16 Model OECD Tax Convention.|
|INTERNATIONAL SOCIAL SECURITY|
|Cross border employments||EU Regulation No 883/2004 and EU regulation No. 1408 / 71.|
|Exception under Art 16 of Reg. 883/2004
and Art 17 of Reg. 1408/71
|Social Security Cost as % from gross salary and absolute amounts||Due by employer on gross salary:
– Social tax contribution at the rate of 33%;
– Unemployment insurance contribution at the rate of 0,8%;
Due by employee on gross salary (withheld by employer):
– Pension insurance contribution at a rate of 2%.
– Unemployment insurance contribution at a rate of 1,6%.
|Work permit||A citizen of one of the Member States of the European Union (EU), European Economic Area (EEA) and the Swiss Confederation may arrive and work in Estonia for up to 3 months. Nationals of other countries need to obtain a residency permit for working to work in Estonia. Short-term employment in Estonia is allowed for up to 6 months in a year. A foreign national can work short-term in Estonia if he arrives to or stays in Estonian under a visa or a visa waiver program.|
|Visa||EU and EEA citizens do not need a visa to enter Estonia. Non-EU and EEA citizens from particular countries may be obliged to apply for a visa before entering Estonia.|
|Residency permits / registration certificate||EU and EEA citizens are required to apply for the registration of residence, if the presence in Estonia exceeds 3 months.
Third country citizens need to apply for a residence permit, if the stay in Estonia exceeds 90 days. A residence permit may be temporary (validity up to 5 years) or long-term, when certain criteria are met.
|Driving license||Driving licenses issued in other countries are recognized in Estonia. Contracting states of the 1949 Geneva Convention on Road Traffic and contracting states of the 1968 Vienna Convention on Road Traffic driving licences are valid in Estonia for 12 months starting from the time its holders takes up permanent residence of Estonia.|
|STOCK OPTION PLAN||Certain tax exemptions are applicable in case the provisions of stock option plan provided by the law are fulfilled.|
|ARTICLE 15 OF THE OECD MODEL|
|Notion of employer|
|Existence of a permanent establishment|
|Direct line: 37253463422|
|Address: Rotermanni 8, Tallinn, 10111, Estonia|