Ownership, income, or benefits are subject to taxes. Taxes are divided into state and local taxes. The type and size of taxes you need to pay depends on the peculiarities of your company.

Social tax, personal income tax, unemployment insurance premiums, and pension insurance premiums have to be paid to the state from the salary of each employee working under an employment agreement.

More information on taxes of an entrepreneur can be found under the subtopic Taxes and Customs of the State Portal. Due dates for business tax liabilities can be found in the tax calendar of the Estonian Tax and Customs Board.

State and local taxes

Local taxes may be established by a local government – for instance, on the use of infrastructure or other resources in a certain region. State taxes include income tax, social tax, land tax, gambling tax, value-added tax, customs duty, excise duties, heavy goods vehicle tax, business income tax and motor vehicle tax.

Direct and indirect taxes

In the case of a direct tax, your company will have to bear the tax obligation. This applies to income tax, land tax and heavy goods vehicle tax.

In the case of indirect tax, the end consumer is responsible for paying the tax, and the tax is reflected in the form of an increased price on goods or services. Such taxes include value-added tax, excise duties and customs duty.

List of corporate taxes

As to which taxes have to be paid at which rate, this depends on the specific characteristics of your company.

• Income tax
• Value-added tax
• Social tax
• Customs tax and excise duties
• Unemployment insurance premium
• Environmental charges
• Taxes payable in the case of cross-border operations
• Other taxes

Taxes are assessed and collected, reviewed and enforced by the Tax and Customs Board, and by local governments in the case of local taxes. If taxes are not paid, not paid on time or paid incorrectly, it is possible that you will be assessed penalties, interest or fines for delay. Companies are required to keep accurate accounting and tax records and file statements and submit tax declarations as required. The Tax and Customs Board and local government must receive, within a reasonable amount of time, an overview of the business transactions conducted by a company as well as of key related aspects (income, expenses, assets and liabilities).

Ratings given to your company can be found in the e-MTA under menu item “Ratings“, where you can also view publicly available data about your company. The service provides companies with feedback on tax behaviour and guidelines for eliminating any shortcomings identified. By following the guidelines, companies are able to reduce the risks of tax control and additional tax liabilities.

If you begin cooperation with new partners, it would be wise first to verify whether they have paid all taxes to the government as required. Estonia’s credit reporting agency Krediidiinfo issues credit reports on companies' credit rating, credit limits and payment problems and offers access to companies’ annual reports. There is a fee for Krediidiinfo services.

Krediidiinfo credit reports on companies

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