Once a company has been registered in Estonia and a VAT number received, the company must file monthly value added tax return declarations. A value added tax return and its annex must be submitted to the Estonian Tax and Customs Board by the 20th day of the month following the taxable period (usually a calendar…

The two most common payments made by a company to its management or employees are a service fee to a management board member (juhatuse liikme tasu) and a salary (töötasu). There is a difference in the relations between an Estonian private limited company (OÜ) and a management board member and those between the company and…

A special feature of the Estonian tax system is that company profit is not subject to corporate tax, providing it is reinvested rather than distributed as dividends. Corporate Income Tax The standard corporate income tax rate is 20% (calculated as 20/80 of the net dividend received). From 1st January, 2019, based on Chapter 5, Paragraph…

Electronic trade In recent years, electronic trade has gained widespread acceptance and currently includes: Online sales of physical goods and services, as well as sales of digital products (downloadable music, e-books, downloaded virtual products, and games); Electronic banking and insurance services; Online auctions; Electronically supplied telecommunication services; Remote development and servicing of programs and equipment;…

Estonian tax law considers e-residents as non-residents. Therefore only their income derived in Estonia is taxable, with income originating from other countries not being subject to Estonian tax laws. In terms of taxation, a non-resident in Estonia is a private individual who spends less than 183 days in Estonia within any consecutive 12 months, which…

In terms of economic freedom, Estonia is ranked as one of the best in the world. In the 2016 Index of Economic Freedom (prepared by the Heritage Foundation) Estonia is placed 9th out of 178 countries. The Ease of Doing Business index published by the World Bank (2017) puts Estonia in 12th position. According to…