Important 2014 numbers and taxes in Estonia.

Value Added Tax Act (VATA)

• Rate of value added tax is 20% (subsection 15 (1) of the VATA)
   
• Rate of value added tax is 9% (subsection 15 (2) of the VATA)
   
• Rate of value added tax is 0% (subsections 15 (3) and (4) of the VATA)
   
• Tax-free threshold is 38 euros (clause 5 (2) 2) of the VATA)
   
• Threshold for obligation to register for VAT is 16,000 euros (subsection 19 (2) of the VATA) 

Social Tax Act (STA)

• Rate of social tax is 33% (subsection 7 (1) of the STA) of gross wages
   
• Monthly rate which is the basis for payment of social tax is 320 euros (subsection 2 (10) of the 2014 State Budget Act)
   
• Minimum social tax liability of employers is 105.60 euros (monthly rate x 33%)
   
• Minimum social tax liability of sole proprietors is 316.80 euros per quarter (1267.20 euros per year) 

Income Tax Act (ITA)

• Rate of income tax is 21% (subsection 4 (1) of the ITA)
   
• Rate of income tax on payments of legal persons (fringe benefits, gifts, donations, costs of entertaining guests, dividends, and expenses not related to business) is 21/79 (subsection 4 (11) of the ITA)
   
• Amount of basic exemption deductible from taxable income during a period of taxation is 1728 euros per year, i.e. 144 euros per month (§ 23 of the ITA)
   
• Increased basic exemption in event of pension is 210 euros per month, i.e. 2,520 euros per calendar year (increased tax exemption applies only to those receiving I and II pillar pension, and the person applying the exemption is the person paying the pension) (§ 232 of the ITA)
   
• There is no tax exemption threshold for accommodation expenses related to business trips both in event of business trips within the country and abroad (clause 13 (3) 1) of the ITA). Irrespective of the amount, accommodation expenses related to business trips are deemed business-related expenses, and it does not give rise to additional tax liability.
   
• Income tax is not charged on contributions made by employers to employees’ III pension pillar. The tax exemption threshold for employers is 15% of payments made to employees during a calendar year, but no more than 6000 euros per year (clause 13 (3) 15) of the ITA)
   
• From taxable income it is allowed to deduct up to 1,920 euros in total per taxpayer, but no more than 50% of the taxpayer’s income taxable in Estonia for the same period of taxation (section 282 of the ITA). It applies to the right to deduct housing loan interest, training expenses as well as gifts and donations, and it is applied to expenses incurred after 01.01.2012.
   
• During the same period of taxation or three following periods of taxation, the taxpayer also has the right to deduct from taxable income expenses related to forest management (subsection 37 (8) of the ITA)
   
• Fringe benefit is not formal education acquired within the adult education system which is directly related to employment and service relationship and functions of a member of management board of a legal person, director of a branch of a foreign company and manager of another permanent establishment of a non-resident (clause 48 (4) 10) of the ITA)

Funded Pensions Act (FPA)

• Rate of contribution to funded pension depends on whether a person obligated to make contributions to funded pension filed an application in 2013 to increase the contribution made by the person from 2% to 3% for the period 2014–2017. If a person filed an application to temporarily increase his/her rate of contribution, 3% of payments made to him/her shall be withheld as contribution to mandatory funded pension; if a person did not file such an application, then as usual, 2% of payments made to him/her shall be withheld as contribution to mandatory funded pension. Employers are required to check the percentage of employees’ contribution to funded pension (www.pensionikeskus.ee).
  (Applicable to payments made already in January 2014)
  

Regulation governing unemployment insurance premium

• Rate of unemployment insurance premium for insured persons is 2% (§ 2 of Government of the Republic Regulation No. 167)
   
• Rate of unemployment insurance premium for employers is 1% (§ 3 of Government of the Republic Regulation No. 167) 

Regulation governing minimum wage

• Minimum hourly wage is 2.13 euros (subsection 1 (1) of Government of the Republic Regulation No. 166)
   
• Minimum monthly wage is 355 euros (subsection 1 (1) of Government of the Republic Regulation No. 166) 

Parental Benefit Act (PBA)

• Rate of parental benefit is 320 euros (subsection 2 (5) of the 2014 State Budget Act)
   
• Maximum parental benefit is 2,378.25 euros (3 x 744.73 €, subsection 3 (4) of the PBA)
   
• An amendment to the Parental Benefits Act, which governs the amount of parental benefit if the recipient of benefit is receiving income from work at the same time, has entered into force. If the income from work received by the recipient of benefit in the same calendar month is higher than the rate of benefit, the benefit shall be reduced. The new equation for decreasing benefit is simpler, more transparent and more beneficial for the parent:
  benefit – (income – rate of benefit)/2. 

Commercial Code (CC)

• Minimum share capital of private limited companies is 2,500 euros (§ 136 of the CC)
   
• Minimum share capital of public limited companies is 25,000 euros (§ 222 of the CC) 

Alcohol, Tobacco, Fuel and Electricity Excise Duty Act (ATFEEDA)

Alcohol excise duty as of 01.01.2014

• Beer – 6.28 euros/vol/hl (subsection 46 (1) of the ATFEEDA)
• Fermented beverages or wine with an ethanol content of up to 6% – 36.71 euros/hl (subsection 46 (2) of the ATFEEDA)
• Fermented beverages or wine with an ethanol content exceeding 6% – 84.67 euros/hl (subsections 46 (3) and (4) of the ATFEEDA)
• Intermediate products – 180.81 euros/vol/hl (subsection 46 (5) of the ATFEEDA)
• Other alcohol – 16.43 euros/vol/hl (subsection 46 (6) of the ATFEEDA)

Tobacco excise duty

• Fixed rate for cigarettes is 46.50 euros, but no less than 90 euros per 1,000 cigarettes and a proportional rate of 33% of the maximum retail price of the cigarettes (subsection 56 (1) of the ATFEEDA)

Environmental Charges Act (ECA)

• Rates for extraction of mineral resource reserves belonging to the state (subsection 9 (2) of the ECA)
• Rates for water abstraction charge for the abstraction of water from a water body or aquifer (subsection 10 (3) of the ECA)
• Rates of fishing charge for commercial fishing in 2014 (clause 11 (2) 1) of the ECA)
• Pollution charge rates upon emission of pollutants into ambient air (§ 19 of the ECA)
• Pollution charge rates upon discharge of pollutants into water bodies, groundwater and soil (§ 20 of the ECA)
• Pollution charge rates upon waste disposal (§ 21 of the ECA)

State Budget Act

• Rate of child allowance is 9.59 euros per month (subsection 2 (4) of the 2014 State Budget Act)
   
• Rate of child care allowance is 76.70 euros per month (subsection 2 (4) of the 2014 State Budget Act)
   
• Maximum rate of setting-up aid is 4,474 euros (clause 2 (7) 1) of the 2014 State Budget Act)
   
• Daily rate of unemployment support is 3.62 euros (clause 2 (7) 3) of the 2014 State Budget Act)
   
• Rate of subsistence level is 90 euros per month (clause 2 (8) 1) of the 2014 State Budget Act)
   
• State funeral benefit is 191.74 euros (subsection 2 (9) of the 2014 State Budget Act) 

Other useful information

• Working time calculation in 2014
• Minimum wage as of 1996
• Rates of unemployment insurance premium as of 2003
• About increase of contributions to II pension pillar
• Rates of parental benefit as of 2005
• Calculation of parental benefit
• Minimum loan interest in event of fringe benefit as of the year 2000
• Guidelines issued by the Accounting Standards Board  as of 01.01.2013 

 

Artikkel on tõlgitud koostöös Sunny Galandrex Tõlkebürooga.

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eesti keeles 2014. a numbrites
vene keeles 2014 год в цифрах