Tax reporting

Accounting

Obligations with regard to declaration and payment of taxes

By 10th day of the month following the reporting month a declaration of TSD form shall be submitted (in connection with income and social taxes, mandatory pension payments and unemployment insurance).

By 10th day of the month following the reporting month obligations arise on payments in connection with income and social taxes, mandatory pension payments and unemployment insurance.

By 20th day of the month following the reporting month a declaration of KMD form (VAT declaration) shall be submitted.

By 20th day of the month following the reporting month INF annexes to KMD (VAT) declaration shall be submitted with indication of every party from which goods/services were purchased or to which goods/services were sold for the amount exceeding 1000 euros (without VAT).

By 20th day of the month following the reporting month the report on the intra-community turnover shall be submitted (VS form).

Current tax rates

Salary taxes

• Withheld income tax – 20%
• Social tax – 33%
• Unemployment insurance (withheld from the company’s salary expenses) – 0.8%
• Unemployment insurance (withheld from the employee’s salary) – 1.6%
• Pension insurance (voluntary) – 2.0%/3.0%
• Minimum amount exempt from income taxation: 170 EUR

Here you can calculate total expenses in connection with salaries.

VAT

• VAT rate in the Republic of Estonia is 20%, except for cases listed in Art. 15 of the Value-added Tax Act (KMS).
• VAT for books, medications and accommodation services in 9%.
• VAT for exports and intra-community turnover is 0%.
• The turnover exempt from taxation (Art. 16 of KMS) – the universal post service, medical services, dentist services, insurance and other services.

Dividends

• Dividends in Estonia are taxed with corporate income tax of 20% (at the rate of 20/80 of net sum).

Profit taxes

• There is no tax on received but undistributed profit in Estonia.

Note! The list of taxes on this page contains the most important applicable taxes and is not final. Additional information on taxes is available on the website of the Tax and Customs Board and in the database of Riigiteataja State Gazette.