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…