Estonian tax rates 2016 

NB! Page shows the general rates, every single case may require a separate counseling !

Corporate income tax from profit earned on an annual basis  0%

Corporate income tax from dividends (disbursements to the owners)  20 %

(example: amount paid out 1000 eur x 20 : 80 = 1250 eur) dividend calculator

VAT (turnover tax) standard rate 20 %

Salaries 
All taxes total amount about 70% from net salary
(example: the employee receives 1000 eur net, the total amount taxes are 675,96 eur, total cost to the employer is 1675,96 eur)

Taxes separately:
(salary calculator) 

Social security tax  33 %

Personal income tax  20 % 

Tax-free minimum 170 eur per month

Unemployment tax 2,4 %

Mandatory funded pension 0%, 2%, 3% (depends on agreement)

The minimum wage per hour is 2,54 eur (bruto) 

The minimum wage per month for full-time work, is 430 euros (bruto)

Official journey, tax-free daily allowance is 50 euros (up to 15 days in a calendar month, from there is 32 euros)

Fringe benefits tax – (benefits to the employees and related persons)

all the various taxes from amount paid out: totaling about 66,25 %

Employers car :

Category N1 – tax free

Category M1 :

option 1: fringe benefits tax about 170 eur per month (no logbook)

option 2: KEPT A LOGBOOK (diary)
a) the employee pays for private trips to the employer 0,30 eur per km
or
b) the employer pays fringe benefits tax for the employees private trips

Employees car for the business trips :

KEPT A LOGBOOK (diary)

Employer pays 0,30 eur per km to the employee (contains all costs, inc fuel). It is tax-free up to 335 euros.

Events and Catering, restaurant bills
the company’s employees, board members and other related persons:
for them it is a fringe benefit, taxed totaling about 66,25 %
other persons (clients etc): no tax, this is the company’s expense (persons names must be submitted to the accountant!)