Taxes in Estonia

Taxes in Estonia, Taxation in Estonia, Taxes system in Estonia

III. Tax Income Tax 1st Legal persons in Estonia are statutorily exempt from tax where to invest the profits in the development of the company. This does not include: a / employee benefits, including: • total or partial costs of housing; • free or concessional lending rates after the employee car or other asset to the company's commercial or private purposes; • cover the cost of insurance for the employee when it is not his duty; • cover the costs of missions and delegations diet, if their height exceeds the official rate; • compensation of expenses for use of the private car for business purposes; • providing loans on concessional terms; • a free transfer, exchange or sale of, securities, property rights or services at prices lower than the market; • purchasing things from an employee, securities, property and services at prices higher than market; • cancellation of debt, except when the projected costs of recovery exceed the amount of the debt; • costs of employee training. b / gifts and donations to individuals and legal persons, non-profit organizations trade unions and residents. c / dividends and other benefits related to distributions, D / expenses unrelated to operations to business, concerning in particular: • mandates; • confiscation of property; • administrative penalties for the use of water without proper authorization, or abnormal quantities; • increased fees and administrative penalties for failure to comply with the Act on the Protection of the environment; • expenditure to cover environmental damage, including to third parties; • registration fees and the States to non-profit organizations, unless such an obligation is not clear from the statutes of the entity; • expenditure on services and purchase of property not connected with the activities of the entity; • expenditure on the purchase of shares or securities of the corporation in the so-called. tax haven where tax income tax has not been determined or the tax rate is lower by two thirds of the force in Estonia; • provision of loans, payment of interest or penalties for legal persons from countries so. a tax haven. e / representation expenses Mentioned in point. 1-e expenses are taxed at the rate of 21/79 IV. Income tax from individuals 1st In Estonia, the income tax applies to individuals of 21% (basic rate) and 10% (Reduced rate). 2nd Reduced tax rate of 10% fall in revenues as follows: • for voluntary pension insurance, the insured person reaches the age of 55 years or in case of partial or total loss of working capacity; • for the liquidation of an insurance company; • holders of shares in pension funds after they reach 55 years, or in case of partial / complete loss of working capacity and elimination of the pension fund; • heirs of the insured persons or having shares in pension funds. Tax exemptions 1st The amount of tax-free amounts to EEK 27,000 per annum 2nd In addition, exemptions include: • income parents / guardians for each child 2 and subsequent to the completion of 17 years in the amount of EEK 27,000 per child per year; • maintenance; • interest rates on housing loans for their own parents and children; • expenditure on training; • interest rate for training purposes; • gifts and donations provided by individuals to charitable institutions, foundations and other nonprofits, public institutions, etc. up to 5% income tax year in question; • membership fees to trade unions and non-profit organizations of up to 2% of the income tax year in question; • payments for voluntary pension insurance and pension funds for up to 15% of income earned in a given tax year. Notwithstanding the foregoing, the employer also pays the amount of gross pay 33% social tax (13% on health insurance and 20% for social security). From 1.1.2002, the force contribution to the unemployment fund. On 01/01/2008. rate of 0.3% on the amount of gross pay (payable by the employer) and 0.6% (payable by the employee.) V. Income tax from individuals doing business In Estonia, the tax rate applicable at 21%. Tax exemptions 1st The amount of tax-free amounts to EEK 27,000 per year. 2nd In addition, exemptions include: • all documented expenses related to the economic activity; • the amount of EEK 45,000 for farmers under sold, unprocessed agricultural production; • documented representation expenses in an amount not greater than 2% of business income in the fiscal year net; • expenses relating to benefits for employees (based on taxable income after paying tax 22/78). Expenses not deductible • fines; • the value of confiscated property; • administrative penalties for the use of water without proper authorization, or abnormal quantities; • increased fees and administrative penalties for breach of the Act on the Protection of the environment; • expenditures to cover environmental damage, including to third parties; • gifts and donations; • losses arising from sales person connected with the taxpayer's assets at a price lower than the market except when it is linked to reduced the provision for employee and escorted from the value of the income tax; • losses arising from the purchase from a person associated with the taxpayer's assets at a price higher than the market. When the sum exceeds the amount of the tax exemption of income derived from business activities, the difference can be settled within the next seven years by deduction from income. I. Value added tax (VAT) The Law on VAT of 7 December 2005, which entered into force on 1 January 2006, the following terms mean: exports of goods - export of Community goods from the customs territory of the Community, imports of goods - imports of goods from a third country within the Community, Community acquisition of goods - the purchase of goods in another Member State, together with the transport of goods to Estonia (business between member countries), intra-Community supplies of goods - the supply of goods from Estonia to another Member State, including transport (the business between the member countries). 1st Tax rates The basic tax rate is 20%. In special cases, may also be used lower rates 2nd VAT exemption a / It includes trade in goods and services as follows: • universal postal service within the meaning of the Act on the post office; • medical services within the meaning of the Act on Health Insurance and the Decree of the Minister for Social Affairs, • Free services provided by them profitable association for its members and the services provided by these associations related to the use of sports facilities for individuals; • some social services specified by the Social Welfare; • services provided to children and young people through orphanages, welfare homes, etc. • services related to science, including all kinds of training materials distributed by the service providers for the participants of the courses, tutoring associated with obtaining a general education and other training services, with the exception of training conducted by the company, • transport of patients injured in accidents or disabled in wheelchairs, using special means of transport meeting the requirements of the Road Traffic Act, • insurance services, including insurance services provided by insurance intermediaries • rent, lease of the use and transfer of immovable property or parts thereof, and associated services as well as expenses for land tax, insurance and certain other buildings, • property or parts thereof. (Tax exemption does not apply in relation to construction work, within the meaning of the Act on construction, land on which construction work carried out, and handed przed construction work begins, and the parcels referred to in the Act on planning, if there are no works are carried out Building). • Estonian postage stamps sold at nominal value; • Financial services and credit as specified in the Credit Institutions Act, with the exception. Factoring; • securities • organizing games of chance, including lotteries and lottery tickets, • gold investment and transfer services for investment gold Import of the above. goods and services is also exempt from VAT. b / In addition, the exemption is subject to import / entry of, inter alia, the following major products: • gold imported by the Central Bank of Estonia, • banknotes and coins, • stamp duties, • the goods referred to in Chapter 1 of Council Regulation No 918/83/EEC and goods specified in Division 6 of the Community Customs Code, • books, periodicals and other materials sent to libraries, research centers and educational institutions, • confiscated counterfeit clothing and footwear, which are transferred to state or local health care centers or social institutions, • intra-Community acquisition of all the above. goods and services, • intra-Community acquisition by a foreign tax payer, if the conditions for repayment of VAT as referred to in § 35 paragraph 1 of the Law on VAT • intra-Community acquisition of goods by a taxable person of another Member State in the case of triangular transactions. 3rd VAT refund a / Under Article 35 of the Act on tax on goods and services of 10 December 2003 shall be entitled to a VAT refund to a foreign taxpayer in the case of importation or purchase of services and goods in Estonia (not applicable to the property) for the purposes of its business, provided that: • it is liable for VAT on business in their country of residence; • does not result in a permanent business in Estonia; • the amount of recoverable VAT is not less in any calendar year more than 400 or 3000 EEK EEK, where an application relates to a period longer than three months but less than one calendar year. b / refund of VAT Mode Regulation 68 sets out the Minister of Finance on 7 April 2004 ( in the U of Estonian, which the appendix is an application form for VAT refund in the j . English. The application must be sent to the Office of Revenue and Customs (Maksu-ja Tolliameti Pohja Keskusadres, Endla 8, 15177 Tallinn, Estonia,, tel 372 6934100, 6934200, fax 372 6934111, The application shall be accompanied by: • orgina³y invoices / receipts containing the seller of goods / services (name, address, NIP, REGON), the buyer (as above), the name of the product / service, number / type, the value of the goods / services gross and net amount of VAT and the amount of possibly discounts and proof of payment; • a certificate from the Tax Office responsible for the location of the applicant that he is liable for VAT on business activities (must be a certified translation of the certificate at the U of Estonian or English). c / proposal only applies to goods / services purchased in the previous calendar year d / Tax refund shall be made within six months from the date of receipt Note: in the coming days is anticipated novel effect. Regulations, which allow the recovery of tax on quarterly basis. Text in j.angielskim Act (VATA) is published on II. Excise duty 1st Fuels Rates from 01.01.2008 on Gasoline 1000L 6600 EEK Unleaded petrol 1000L 5620 EEK Gasoline for aircraft 1000L 1120 EEK Diesel 1000L 5165 EEK Diesel for special 1000L 960 EEK Natural gas liquid 1000kg 1960 EEK Methane 1000kg 1570 EEK Kerosene 1000L 4730 EEK Heavy fuel oil, 1000 kg 235 EEK Light fuel oil, 1000 kg 690 EEK Coal and coke, 1 GJ of heat EEK 4.7 Oil shale 1000 kg 235 EEK Electricity 50 EEK / 1 MWh Exemption from excise duty a / at the entry to Estonia - the fuel contained in the standard fuel tanks of motor vehicles and motor boats, and, and, in addition to 10 liters of fuel, if it is not intended for commercial purposes. b / fuel used in the chemical industry as raw materials, excluding fuel for transport and heating, c / bottled unconventional fuel or similar substances in quantities up to 1 l (code mark these substances § 20 - Act on excise duty on alcohol, tobacco and fuel). Reimbursement of excise duty entitled: a / foreign diplomatic missions, delegations of intergovernmental organizations, individuals with diplomatic status with the exception of honorary consuls, and representatives of special missions accredited to Estonia.

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