TAX CONSULTATION IN ESTONIA

TAX CONSULTATION IN ESTONIA

What taxes do you have to pay in Estonia?

Value-added tax (VAT) is a general rate of 20%, but reduced tax rates apply for preferential categories, 9% for hosting services, book publishing, and pharmaceutical products. Also 0% for the export of goods from Estonia, according to the contract of delivery to the EU, goods, and services exported from the EU. The following types of activities are exempt from taxation: financial services, securities services, insurance services, leasing of real estate and/or its parts, and other services in accordance with Estonian and EU legislation.

There are two types of payment of value added tax:

• Mandatory – in case of reaching an annual turnover of 40,000 euros or more
• Voluntary with an annual turnover of fewer than 40,000 euros

Tax on retained earnings 0%, tax on dividend distribution 18%

Social insurance – 33%

Pension contributions – paid by the employee from his salary, and it is 3%

Real estate tax – 0%

There is no tax on transport, on inheritance, a company registered in Estonia does not pay turnover tax for transactions in EU countries, and is also not subject to other customs taxes

Importantly! The two-tier system of tax payment at the state and local levels. Local governments can impose local taxes.

Tax optimization/exit tax/ tax planning (Estonia)

Among the most common tax optimization mechanisms in Estonia are:

• Creation of a group of companies that includes funds in Luxembourg, Holland, Liechtenstein, and other jurisdictions, depending on the profile of your business and its features.
• Expansion of your business to favorable tax residences (Hong Kong, Singapore, Slovakia)
• The system of refinancing foreign assets

Representation in the tax authorities in Estonia by Yuk Prykhodko and partners – includes consulting, and preparation of all the necessary documentation of relations with the tax authorities of Estonia and the EU on tax issues.

What is included in the duties of a tax lawyer of Yuk Prykhodko and partners:

• Consulting on taxes in Estonia
• Calculation of taxes in Estonia
• Preparation of tax documents in Estonia
• Tax representation in Estonia
• Settlement of tax disputes in Estonia

What is the cost of a tax consultation in Estonia? Leave your phone number and our specialists will contact you.