Taxes in Estonia - Short Overview

Corporate Income tax on profits

0%

Corporate Income tax on distributed profits
22% from 01.01.2025

Corporate income tax 22% is paid from distributed profit. Shareholders receive 78%.

Private person income tax
22% from 01.01.2025

Private person income tax is based on gross income and is deducted from the income.

VAT
24% from 01.07.2025

Social security tax

33%

Social security tax is from gross income and is paid on top of the salary by the employer.

Unemployment tax

1.6% for the employer
0.8% for the employee

The unemployment tax is calculated based on the gross salary. The employer pays 0.8% on top of the salary, and 1.6% is deducted from the employee's salary.

Tax-exempt income

12 x 700 = 8400 EUR/year

Responsibility for tax payments

Responsibility for tax payments is always on the company (employer).