Tax rates in 2020

  • In Estonia companies do not pay corporation tax from profit.
  • The tax rate for dividends is 20% or 14% (in case the company pays dividends regularly).
  • The VAT rates are mostly 20% or in special cases 9%, 0% and tax-free.
  • For turnovers exceeding 40 000 euros companies mare liable to register in the VAT registry.
  • There is a domestic reverse charge mechanism for selling metal products (the buyer does not pay the VAT to the seller).
  • The minimum wage per month for full-time work is 584 euros, i.e. 3.48 euros per hour (gross).
  • The withheld income tax rate is 20%. As of 1 January 2018 progressive income tax has been implemented.
  • The basic tax exemption is 500 euros if the income does not exceed 1200 euros per month.
  • The social tax rate is 33%. Minimal social tax duty is 178.20 euros per month in order to get health insurance.
  • 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%