Income Tax: Basics of Calculation, Calculation, and Payment
Every sole proprietor officially operating in Estonia faces the need to pay taxes. One of the key types of taxation is income tax. The rules for which are regulated by special legislation. This article covers the basics of calculating, and paying income tax for sole proprietors. Basic Provisions of Income Tax Let’s review the basic […]
Reduction of advance payment of social tax for PFL
The tax system for entrepreneurial activity for individuals provides mechanisms for optimizing financial obligations. This is done by accounting for taxes paid by employers. One such mechanism is the reduction of the advance payment of social tax (hereinafter referred to as “ST”) for individual entrepreneurs. This article provides a detailed examination of the procedure for […]
Proportional Calculation of Social Tax in Estonia
It is important for all social taxpayers in Estonia to correctly calculate the amount of their mandatory contribution for each reporting period. Understanding the intricacies of Social Tax in Estonia is crucial. Especially regarding partial periods. If the tax period covers less than a full quarter, the advance payment amount must be calculated proportionally. This […]
Advance Payments of Social Tax in Estonia
Social tax plays an important role in ensuring the social security of the Estonian population. One of the key aspects of the tax system is the advance payments of this tax, which are required to be made by sole proprietors (SPEs). Who is required to make advance payments? SPEs are required to make advance payments […]
Social Tax in Estonia in 2025
The tax system plays a vital role in the economy of any country. It provides the state with revenue to finance infrastructure and other expenses. One key element of the tax system is the social tax system. This system provides financial support to citizens during periods of incapacity for work, old age, and disability. Let’s […]
CHECKLIST: “PLACE OF BUSINESS AND VAT”
Determining an organization’s principal place of business is crucial for the correct calculation and payment of value-added tax (VAT). This aspect often causes difficulties for taxpayers, especially when operations are conducted simultaneously in multiple countries. This article provides a checklist to help you systematize the necessary steps and requirements to ensure compliance with tax legislation […]
Permanent establishment and VAT
Entrepreneurs often establish companies in Estonia but actually operate in another country. However, for VAT and corporate income tax purposes, this may mean the company has acquired a permanent establishment (PE) abroad. Along with it, new tax liabilities arise. Let’s explore this. What is a «permanent establishment»? A permanent establishment is more than just a […]
New Security Tax
The Estonian government recently approved a new security tax The Estonian government has approved amendments to the new security tax: from 2025, corporate profits and citizens’ income will not be taxed from the first euro. In the long term, to finance defense in line with the new security tax. The income tax and VAT rate […]
Estonia VAT rate and quick registration
This Article Covers VAT Registration in Estonia This article is intended for legal entities and sole proprietors planning to conduct business activities within Estonia VAT. Value-Added Tax (VAT): General Provisions VAT is an indirect tax applied to the sale of goods and services within Estonia. All companies operating in Estonia must register as VAT payers […]
Company Registration in Estonia and Tax-Free Money Withdrawal
Company Registration in EstoniaCompany registration in Estonia provides access to the benefits of the local tax system and opportunities for cost optimization and accounting services. What Expenses Are Taxable? Let’s examine various money withdrawal options, from the most taxed to completely tax-free ones. Taxes in Estonia for Fringe Benefits The concept of fringe benefits is […]