Personal taxation basis:
Residents are taxed on their worldwide income
Nonresidents are taxed only on income received from Estonian sources
An individual is resident if his/her place of residence is in Estonia or if he/she stays in Estonia for at least 183 days over 12 consecutive calendar months (and will be deemed to be resident as of the date of his/her arrival in Estonia.
Estonian state public servants who are in the foreign service also are resident.
Joint filling is permitted if both spouses are residents or, subject certain conditions, if at least one spouse is a resident of another EU member state.
Income tax rates in Estonia
A flat 20% rate applies (The first 2040€ annually is exempt)
Social security payments in Estonia:
Social security is an employer-borne cost, except for the self-employed. The combined social and health insurance rate paid by the employer on cash and in kind (fringe benefits) employee remuneration is 33%. Employees, however, must make unemployment insurance contributions at 1.6% of taxable remuneration (i.e. monetary employment income)
Inheritance/estate tax in Estonia:
Net wealth/net worth tax in Estonia:
Compliance for individuals in Estonia:
Tax year – calendar year
Tax on employment income is withheld by the employer and remitted to the tax authorities.
The tax return must be submitted by 31 March and paid by 1 July of the following year.
If a person has declared capital gains, the deadline for any additional income tax payable is 1 October instead of 1 July.
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