Tax rates in 2019

  • The companies doesn’t pay income tax from profit in Estonia.
  • The tax rate for dividends are 20% or 14% (in case if company pays dividends regularly).
  • The VAT rates are 20% (mostly); 9%, 0% and tax-free.
  • The limit for registering as a person liable for value added tax (VAT) is a turnover exceeding 40 000 euros.
  • The domestic reverse charge mechanism as of 1 January 2017 for selling metal products (the buyer pays the amount net of VAT).
  • The minimum wage per month for full-time work is 540 euros, i.e. 3.20 euros per hour (gross).
  • The withheld income tax rate is 20%. As of 1 January 2018, progressive income tax shall be applied.
  • The basic exemption is 500 euros if income is until 1200 euros per month.
  • The social tax rate is 33%. The monthly rate for calculating the minimal social tax duty is 500 euros, meaning that the minimal social tax duty is 165 euros per month. The monthly payment of at least the minimal social tax rate ensures health insurance.
  • The unemployment insurance payment rates are 1.6% for employees and 0.8% for employers.
  • The pension fund tax is 2%