(inglise keeles, 02.10.2026)
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Tax system summary
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Estonia has a relatively straightforward tax system consisting of national taxes and local taxes. The principal national taxes include income tax, social tax, value added tax, land tax, motor vehicle tax, heavy goods vehicle tax, gambling tax and excise duties. Local governments may impose certain local taxes, although their use is limited and varies by municipality. A distinctive feature of the Estonian tax system is the corporate income tax regime. Profits earned and retained or reinvested by an Estonian resident company are not subject to corporate income tax when earned. Corporate income tax is triggered when profits are distributed or used for other than business purposes. Individuals are generally subject to a flat 22% personal income tax rate. As a Member State of the European Union, Estonia’s tax legislation incorporates the relevant EU tax rules, including the EU VAT and anti-tax avoidance framework. Estonia is also a member of the OECD, and its transfer pricing rules follow the arm’s length principle reflected in the OECD Transfer Pricing Guidelines. Estonia has an extensive network of double tax treaties, which may limit domestic taxing rights and provide relief from double taxation. |
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Tax rates at glance
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The Estonian corporate income tax system differs from traditional corporate tax systems by deferring the taxation of profits from the time when the profit is earned to the time when it is distributed. Consequently, profits retained or reinvested by an Estonian resident company are not subject to corporate income tax.
Corporate income tax is charged when profits are distributed as dividends or other profit distributions. Certain payments and expenses are also subject to corporate income tax when incurred, including fringe benefits, gifts and donations, expenses not related to business, hidden profit distributions and transfer pricing adjustments.
As corporate income tax is not imposed annually on accounting profits, Estonia does not apply the traditional concept of tax loss carry-forwards or carry-backs. Capital gains earned by an Estonian resident company are likewise not taxed separately when realised but form part of the company's profits and become subject to corporate income tax upon a subsequent taxable distribution or other taxable event.
A legal person is an Estonian tax resident if it is established under Estonian law. An Estonian company remains an Estonian tax resident irrespective of the residence of its shareholders or the location of its management.
An Estonian resident company may also be subject to taxation in another jurisdiction where it carries on business or is managed outside Estonia. In such cases, double taxation is relieved in accordance with Estonian domestic law and applicable tax treaties.
A branch of a foreign company is not an Estonian resident. However, where the activities of a non-resident give rise to a permanent establishment in Estonia, the permanent establishment is subject to Estonian corporate income tax under broadly the same deferred-taxation principles as an Estonian resident company.
An Estonian resident company is subject to corporate income tax upon the distribution of profits, regardless of whether the underlying income is derived from Estonia or abroad.
Profit may be distributed in monetary or non-monetary form, as dividends or another form of profit distribution.
The principal categories subject to corporate income tax are – formal profit distributions, deemed/hidden distributions, non-business expenses.
Corporate income tax liability on these payments and expenses arises regardless of whether the company has accounting profit or loss.
Formal profit distributions include:
Deemed distributions and adjustments include:
Non-business expenses include:
transactions with legal persons established in jurisdictions included in the EU list of non-cooperative jurisdictions for tax purposes.
The corporate income tax rate is 22%. As corporate income tax is imposed on the distribution or other taxable use of profit, tax is calculated at 22/78 of the net taxable amount, corresponding to a 22% tax rate on the amount before corporate income tax.
For example, where a company distributes a net dividend of EUR 1 000
The 22/78 rate also applies to other company-level taxable payments and expenses, including non-business expenses, taxable gifts and donations, fringe benefits and transfer pricing adjustments, unless a specific rule provides otherwise.
Dividends may be distributed only on the basis of an approved annual report and a profit distribution resolution adopted by the shareholders. The amount available for distribution is determined from the financial statements prepared in accordance with Estonian GAAP or IAS/IFRS.
Dividends are subject to Estonian corporate income tax at the rate of 22/78 of the net distribution. Dividends are taxed at the level of the distributing company. No withholding tax is imposed on dividends paid to resident or non-resident shareholders.
Double taxation of received foreign income is avoided either through the exemption method or the credit method.
An Estonian company may redistribute a dividend without additional Estonian corporate income tax if it held at least 10% of the shares or voting rights in the company paying the dividend when the dividend was received.
If the holding is below 10%, the exemption method does not apply. Instead, foreign income tax paid or withheld on the dividend may be credited against the Estonian corporate income tax payable upon redistribution.
The credit method also applies to other foreign-source income on which foreign income tax has been paid or withheld, such as interest, royalties and capital gains. The foreign tax credit may be used to reduce the Estonian corporate income tax payable on a subsequent distribution.
A non-resident is subject to Estonian corporate income tax if it carries on business in Estonia through a permanent establishment (PE) - a business unit through which a non-resident carries on permanent economic activity in Estonia.
Under Estonian domestic law, a PE may arise through a fixed or mobile place of business or through a representative authorised to enter into contracts on behalf of the non-resident. Where an applicable tax treaty provides a narrower definition, the treaty limits Estonia’s taxing rights.
A PE may operate through a branch registered in the Estonian Commercial Register or may be registered directly with the Estonian Tax and Customs Board. Branch registration does not in itself mean that a PE exists for tax purposes, and the absence of a registered branch does not prevent a PE from arising. The existence of a PE is determined by the actual activities carried out in Estonia.
An Estonian PE is taxed under the same deferred corporate income tax principle as an Estonian resident company. Profit attributable to the PE is determined in accordance with the Authorised OECD Approach (AOA), under which, for profit attribution purposes, the PE is treated as if it were a separate and independent enterprise. The profit is not taxed when earned, but when it is taken out of the PE in monetary or non-monetary form. Profit is considered taken out when it is no longer available for use by the PE.
A PE must maintain separate records sufficient to determine its income, expenses, assets, liabilities and taxable profit. A non-resident legal person with an Estonian PE must submit a signed annual report of the PE to the Estonian Tax and Customs Board within six months after the end of the financial year.
The report must include identification details of the PE, a management report describing its activities in Estonia, a balance sheet, an income statement and confirmation by the authorized person.
Estonia does not impose a separate capital gains tax on resident companies. Capital gains form part of the company’s profits and are taxed only when those profits are distributed or otherwise become subject to corporate income tax.
Estonia does not provide a participation exemption for gains from the disposal of shares in a subsidiary, and such gains are similarly deferred, but not exempt.
Capital gains derived by a non-resident from the disposal of shares in an Estonian company are generally not taxable in Estonia.
An important exception applies to real-estate-rich entities: Estonia may tax the gain where, at the time of disposal or during the preceding two years, more than 50% of the entity's assets consisted directly or indirectly of Estonian immovable property and the non-resident held at least 10% of the entity at the time of disposal.
Estonia does not impose withholding tax on dividends.
Interest paid to a non-resident is generally not subject to Estonian withholding tax. An exception applies to certain interest connected with holdings in Estonian real-estate investment funds or similar pools of assets.
Tax treaties may reduce or eliminate Estonian withholding tax. Treaty relief generally requires the recipient’s valid certificate of tax residence to be presented to Estonian Tax and Customs Board.
Withholding agent
A withholding agent is an Estonian resident legal person, state or local authority, sole proprietor, an individual acting as an employer, or a non-resident that has a permanent establishment or acts as an employer in Estonia.
The withholding agent must withhold income tax from the following payments:
The employer is responsible for calculating, withholding, declaring and paying the applicable employment taxes and social security contributions on remuneration paid to employees. A foreign employer may also have Estonian payroll obligations where employees work in Estonia, even if the employer does not have a permanent establishment in Estonia.
The employer is also responsible for withholding and declaring income tax from other employment-related payments where required, including remuneration under service contracts and remuneration paid to members of management or controlling bodies.
Remuneration paid to a non-resident member of the management or controlling body of an Estonian resident legal person is taxable in Estonia irrespective of where the duties are performed.
Employment income is subject to the following taxes and contributions:
Example calculation for a gross monthly remuneration of EUR 3 000, applying the full monthly basic exemption of EUR 700 and a 2% mandatory funded pension contribution:
In Estonia fringe benefits are subject to special tax treatment and are taxed solely at the level of the employer with 22/78 CIT and 33% social tax on the gross-up amount. The resulting employer tax cost is approximately 70.5% of the taxable value of the fringe benefit.
The base amount of fringe benefit is total amount with the VAT included, with input VAT deduction not applicable. Tax-exemption is available for health and sports-related expenses, and compensation for the use of a personal car for work, subject to statutory thresholds and conditions.
For example, if the taxable value of a fringe benefit is EUR 100:
Transactions between related parties must be carried out at arm’s length. The requirement applies to both domestic and cross-border transactions. If the agreed price differs from the market value, the resulting adjustment may be subject to Estonian corporate income tax.
The detailed transfer pricing documentation framework includes a Master File and Local File. Taxpayers that are not subject to the detailed Master File and Local File requirements must still document related-party transactions under the ordinary business-documentation rules and be able to demonstrate that the applied transfer prices are at arm’s length.
At the request of the Estonian Tax and Customs Board, transfer pricing documentation must be submitted within 60 days.
A more detailed overview of the topic is available on our homepage under Transfer Pricing.
Estonia generally does not provide corporate income tax reliefs or industry-specific tax incentives, the deferred taxation of profits can be considered as a tax advantage of itself.
Use of losses
Estonia does not apply a traditional corporate tax loss carry-forward or carry-back regime, because corporate income tax is not calculated annually on accounting profit.
Tonnage tax regime
A special tonnage tax regime is available to qualifying resident companies engaged in international carriage of goods or passengers by sea. Under this regime, qualifying shipping income is taxed under special tonnage tax rules instead of the ordinary distributed-profit taxation regime.
Credit institutions
Resident credit institutions and Estonian branches of non-resident credit institutions are subject to a special advance corporate income tax regime. Advance corporate income tax is calculated quarterly on profits earned during the quarter at a rate of 18%.
Global minimum tax
Estonia has exercised the temporary derogation available under the EU Minimum Tax Directive and does not apply the domestic minimum top-up tax, income inclusion rule or undertaxed profits rule during the derogation period, currently extending until 2030. However, in-scope Estonian group entities may nevertheless be subject to information and reporting obligations.
Estonia has implemented the EU Anti-Tax Avoidance Directives (ATAD I and ATAD II). The principal corporate anti-avoidance measures include a general anti-abuse rule, an interest limitation rule, controlled foreign company rules, hybrid mismatch rules and exit taxation.
General anti-abuse rule
A transaction may be disregarded for tax purposes if it is carried out mainly to obtain a tax advantage and does not have sufficient commercial substance. In such case, taxation is determined based on the transaction’s actual economic substance rather than its legal form.
Interest limitation
Estonia does not have traditional debt-to-equity thin capitalization rules. However, due to the transposition of ATAD, Estonia applies an interest limitation rule that functions as a corporate income tax on surplus (exceeding) borrowing costs. Excess borrowing costs are subject to corporate income tax if they exceed both:
The amount exceeding those limits is taxable to the extent that exceeds the company’s loss for the financial year.
Controlled foreign companies
A resident company may be taxed on profits of a controlled foreign company (CFC) where those profits arise from non-genuine arrangements set up mainly to obtain a tax advantage.
A foreign company is controlled where the Estonian company, alone or together with associated enterprises, holds more than 50% of the voting rights, capital or rights to profits. The rules also apply to foreign permanent establishments.
The rule does not apply where the CFC's profit does not exceed EUR 750 000 and its specified non-trading and financial income does not exceed EUR 75 000.
Hybrid mismatches
Estonia has implemented the ATAD II hybrid mismatch rules. These rules apply where differences in the tax treatment of an entity, financial instrument or payment between jurisdictions result in a double deduction or a deduction without corresponding taxation.
Depending on the circumstances, Estonia may tax the mismatch or deny tax exemption on mismatch.
Exit tax
Estonia does not have a general exit tax outside the rules implementing ATAD I.
Under the ATAD exit tax rules, where assets are transferred out of the Estonian taxing jurisdiction, the difference between the market value and the carrying amount of the transferred assets at the time of the transfer is taxed with corporate income tax. The rules may apply to specified transfers of assets between an Estonian head office and a foreign permanent establishment.
Estonia does not have a specific rule automatically taxing debt push-down structure. Such arrangements are assessed under the general anti-abuse rule, transfer pricing rules and other applicable corporate income tax provisions.
Where a structure lacks genuine commercial substance and is used to extract an Estonian target company’s profit without corporate income tax, payments made under the arrangement may be recharacterized and taxed as a profit distribution.
Estonia has an extensive network of bilateral tax treaties, most of which are based on the OECD Model Tax Convention.
Tax treaties may restrict Estonia’s domestic taxing rights and provide for more beneficial treatment than provided in local law.
The current list of Estonian tax treaties and their status is published by the Estonian Ministry of Finance and is available here.
The taxation period for corporate income tax and employment taxes is a calendar month - Estonia has no annual tax returns.
The joint corporate income tax and payroll tax return (form “TSD”) must be submitted to the tax authorities and taxes must be remitted by the 10th day of the month following a taxable distribution or payment.
Form TSD consists of a summary form and separate annexes for different categories of payments:
Form TSD and its applicable annexes are submitted as one tax return. Only the annexes relevant to the payments or taxable events arising in the particular month need to be completed.
Returns are submitted electronically through the Estonian Tax and Customs Board's e-services environment.
From 1st October 2026, Estonia is transitioning towards data-based reporting for form TSD Annexes 1 and 2, enabling data to be submitted directly from accounting software.
A taxable person for VAT purposes is a person engaged in business who is registered or required to register for VAT in Estonia. Taxable person may be a natural person or a legal person, including a legal person governed by public law, the state, a rural municipality or city agency.
A business established outside Estonia may be treated as a taxable person in Estonia where it has a permanent establishment in Estonia through which it carries out taxable transactions, or where, without having a permanent establishment in Estonia, it is required to register for VAT in Estonia in respect of supplies made in Estonia. A foreign business is not treated as an Estonian taxable person merely because it has a permanent establishment in Estonia if that establishment does not participate in the relevant transaction.
A taxable person is required to account for VAT on transactions subject to Estonian VAT and is entitled to deduct input VAT incurred for taxable business activities, subject to the applicable deduction restrictions.
The VAT registration threshold in Estonia is EUR 40,000 per calendar year. A person engaged in business is required to register for VAT if the value of the supplies taken into account for the registration threshold, whose place of supply is Estonia, exceeds EUR 40,000 from the beginning of a calendar year.
The following supplies are included in the threshold calculation:
The registration obligation does not arise if the person's entire supply consists of exempt supplies and supplies taxable at the 0% VAT rate, except intra-Community supplies of goods.
For a foreign business that does not have a permanent establishment in Estonia, the EUR 40,000 threshold does not apply, and registration obligation arises from the first date of taxable supply in Estonia, unless VAT accounted for in Estonia by the recipient under the reverse-charge mechanism.
A business established in another EU Member State may be exempt from the Estonian registration obligation under the EU special scheme for small businesses where the applicable conditions are met.
A person may also apply for voluntary VAT registration before a mandatory registration obligation arises.
A person who is not registered as a VAT taxable person may be required to register as a taxable person with limited liability where it acquires goods from another EU Member State or receives certain services from a foreign business. This may include a person engaged in business whose supplies are exempt from VAT, a legal person not engaged in business, or a state or local government authority.
For intra-Community acquisitions of goods, the registration obligation arises when the value of such acquisitions exceeds EUR 10,000 from the beginning of a calendar year. The obligation arises on the date on which the threshold is exceeded. Excise goods and new means of transport are excluded from this threshold calculation.
For services received from a foreign business, there is no monetary threshold. An Estonian person, or a foreign person operating through a permanent establishment in Estonia, is required to register as a taxable person with limited liability from the receipt of the first relevant service where the service is subject to the general B2B place-of-supply rule and the supplier is not registered for VAT in Estonia.
A taxable person with limited liability accounts for Estonian VAT on the transactions giving rise to the limited VAT liability. It does not charge VAT on its own supplies and is not entitled to deduct input VAT.
The following transactions are subject to Estonian VAT:
acquisitions of service from foreign suppliers that are subject to reverse charge in Estonia.
The time of supply determines the taxable period in which VAT must be accounted for.
The time of supply is the earlier of:
Accordingly, an advance payment received before the goods are supplied or services are provided creates a VAT liability to the extent of the amount received. Issuing an invoice alone does not generally determine the time of supply.
The standard VAT rate in Estonia is 24% and is applied to most supplies unless a reduced rate or exemption is provided. The 24% standard rate has applied since 1 July 2025.
A reduced 13% VAT rate applies to accommodation services and accommodation services with breakfast. Other goods and services supplied together with accommodation are not subject to the reduced rate, except for breakfast.
A reduced 9% VAT rate applies to:
Supplies subject to the 0% VAT rate are taxable supplies and therefore carry the right to deduct input VAT (i.e., exempt with the right to credit).
A 0% VAT rate applies to:
supplies of goods placed under customs procedures, in free zones, tax warehouses or excise warehouses.
VAT is not charged on exempt supplies and, as a rule, input VAT relating to exempt supplies is not deductible (i.e., exempt without the right to credit). Where goods or services are used for both taxable and exempt activities, input VAT deduction is restricted proportionately.
VAT-exempt supplies include:
A taxable person may opt to apply VAT to the lease or transfer of immovable property, except residential premises, and to domestic financial services and transactions in securities that would otherwise be exempt, by notifying the Estonian Tax and Customs Board before the supply takes place.
A taxable person is entitled to deduct input VAT on goods and services acquired for taxable business activities. This includes VAT paid on imported goods and VAT accounted for under the reverse-charge mechanism.
Input VAT is not deductible from goods and services which are:
For passenger cars and related goods and services, input VAT deduction is limited to 50% where the vehicle is also used privately. Full deduction applies in specified cases, including where the vehicle is used exclusively for business purposes.
If deductible input VAT exceeds VAT payable for a taxation period, the excess is reclaimed through the monthly Estonian VAT return.
For cross-border VAT refunds within the EU, a business may reclaim VAT incurred in another Member State through the EU VAT refund procedure.
For non-EU businesses, Estonian VAT may be refunded on the basis of reciprocity. Estonia currently applies this to businesses established in Norway, Iceland, Israel, Switzerland and the United Kingdom.
Estonian VAT legislation provides several special arrangements for particular transactions and groups of taxable persons. The most relevant are outlined below.
Domestic reverse charge
For certain domestic supplies between Estonian VAT taxable persons, VAT is accounted for by the purchaser instead of the supplier. The supplier issues an invoice without adding VAT to the amount payable, and the purchaser calculates the VAT on the transaction and declares it as VAT payable.
The domestic reverse-charge mechanism applies to following supplies:
Import VAT arrangement
A special scheme is available under which an Estonian VAT taxable person may declare import VAT in its monthly VAT return instead of paying the VAT at the time of customs clearance. Where the imported goods are used for taxable business activities and the taxable person is entitled to full input VAT deduction, the import VAT declared as VAT payable can be deducted as input VAT in the same VAT return. As a result, no actual VAT payment arises.
Use of the special scheme is subject to separate approval from the Estonian Tax and Customs Board, and the taxable person must meet all following requirements:
VAT grouping
Two or more closely related Estonian VAT taxable persons may apply on a voluntary basis to be registered as a VAT group.
A VAT group may include a parent company and its subsidiaries, or other taxable persons that are financially, economically and organizationally closely related. Members of the VAT group use a joint VAT registration number and submit joint VAT returns. Transactions between members of the VAT group are not subject to VAT. Members are jointly liable for the VAT obligations of the group.
Cash-accounting
A taxable person whose taxable supply does not exceed EUR 200 000 may elect to apply the cash-accounting VAT scheme. Under this scheme, VAT on sales is accounted for when payment is received rather than under the ordinary time-of-supply rules.
Other special VAT schemes include:
A taxable person must issue an invoice for supplies of goods and services within seven calendar days from the date on which the goods are dispatched or made available to the customer or the services are provided, or from receipt of full or partial payment.
A VAT invoice must include:
The VAT taxation period is a calendar month. A taxable person must submit the VAT return (form KMD) and its annex (form KMD INF) and pay the VAT due by the 20th day of the month following the taxable period.
The KMD INF annex includes invoice-level information on domestic sales and purchase invoices. Reporting is required where the total value of relevant invoices, excluding VAT, with one transaction partner is at least EUR 1,000 during the taxation period.
VAT returns and related reports are submitted electronically through the Estonian Tax and Customs Board's e-services environment.
A resident individual is subject to Estonian income tax on income derived in Estonia and abroad (i.e., worldwide income), whereas a non-resident is subject to Estonian income tax only on specified Estonian-source income.
Estonia applies a flat personal income tax rate of 22%, subject to certain exceptions.
The taxation period for individuals is a calendar year.
An individual is considered an Estonian tax resident if:
Where residence arises under the 183-day test, the individual is treated as resident from the date of arrival in Estonia.
Where an individual is treated as resident in both Estonia and another country, the applicable tax treaty shall determine the individual’s residence for tax purposes.
Resident individuals are taxable in Estonia on their worldwide income, subject to applicable exemptions and relief from double taxation. Taxable income includes, among others:
The taxable income does not include fringe benefits, gifts and donations, dividends or other profit distributions subject to Estonian corporate income taxation.
Tax-exempt income
Certain types of income are exempt from personal income tax. The main exemptions are:
Deductions
Resident individuals may deduct the following expenses from their taxable income in a calendar year:
Training expenses, gifts, and donations are deductible up to a combined amount of EUR 1,200 per year and may not exceed 50% of the individual's taxable incomein Estonia for the relevant year.
The standard personal income tax rate is 22%.
Certain payments from mandatory and supplementary funded pensions are subject to a reduced 10% rate or are exempt from income tax where the applicable conditions are met.
Estonian resident individuals may use an investment account to defer taxation of income earned from certain financial assets.
The main benefit of the regime is that investment income and gains may be reinvested without immediate taxation. Income tax becomes payable only when payments made from the investment account exceed the total amount previously contributed to it.
Employment income is subject to the following social security contributions:
For cross-border employees, EU social security coordination rules or an applicable social security agreement may determine which country's social security system applies.
A non-resident individual is subject to Estonian income tax only on income from Estonian sources. Taxable Estonian-source income includes, among others:
Where applicable, Estonian income tax is withheld at source by the payer. A non-resident is required to submit an income tax return in Estonia, if they received income subject to taxation in Estonia from which income tax has not been withheld.
Estonia does not provide a special tax regime for expatriates.
Employment income relating to work performed in Estonia is subject to Estonian income tax unless an exemption applies under Estonian law or an applicable tax treaty.
Employment income received by a non-resident from a non-Estonian company with no permanent establishment, is not taxable in Estonia if the non-resident is present in Estonia for working purposes for less than 183 days during a period of 12 consecutive months.
Employment remuneration of non-residents received from Estonian employers or temporary agency workers working in Estonia is taxed in Estonia from day 1, even if non-resident spends less than 183 days in Estonia.
Remuneration received by a non-resident for performing the duties of a member of the management or controlling body of an Estonian resident legal person is taxable in Estonia, including where the board member duties are performed outside Estonia.
Estonian resident individuals must declare their worldwide income, including income received from foreign countries.
Double taxation is avoided under Estonian law and applicable tax treaties using either the credit method or the exemption method.
Under the credit method, foreign income tax paid on the same income is credited against the Estonian income tax liability, where the Estonian tax is higher, the difference is payable in Estonia. Under the exemption method, foreign income is exempt from income tax in Estonia but must still be declared.
An applicable tax treaty may restrict Estonia's taxing rights, reduce the applicable withholding tax rate or provide an exemption from Estonian tax.
The taxation period for individuals is a calendar year – both for resident and non-resident.
The annual income tax return must be submitted by 30 April of the year following the taxation period. Any additional income tax payable on the basis of the return is due by 1 October.
Income tax returns are generally submitted electronically through the Estonian Tax and Customs Board's e-services environment.
Estonia imposes an annual land tax on land situated in Estonia, payable by the owners of the land or person holding the right to use the land. Land tax is calculated based on the taxable value of land as determined by the Land and Spatial Development Board.
The applicable tax rate is set by the local government within the provided range:
Estonia does not impose a separate property tax on buildings.
The Estonian motor vehicle tax consists of two components:
Annual motor vehicle tax
The annual motor vehicle tax is payable by the owner or responsible user of a vehicle registered in the Estonian traffic register. The tax applies to both individuals and legal persons. The taxation period is a calendar year and the tax is paid in two instalments.
Tax amount for most vehicle categories is calculated based on:
Vehicle registration fee
A separate vehicle registration fee applies upon the first registration of a vehicle in the Estonian traffic register. The fee is also applicable to the first transfer of ownership of a vehicle already registered in Estonia if the registration fee has not previously been paid – this mainly concerns vehicles that were already registered before the registration fee was introduced on 1 January 2025.
Heavy goods vehicle tax applies to vehicles intended for the carriage of goods registered in the Estonian traffic register, specifically:
The tax is calculated based on the vehicle’s mass, number of axles and type of suspension. The taxation period is a quarter.
Road user charge applies to heavy goods vehicles with a maximum authorized mass exceeding 3.5 tons when they use the Estonian public road network. The charge applies to vehicles registered both in Estonia and abroad.
The amount of the charge depends on the maximum authorized mass of the vehicle and trailer, the number of axles and the vehicle’s emission class.
Estonia imposes excise duty on alcohol, tobacco products, fuel and electricity. Excise duty is payable when excise goods are released for consumption in Estonia.
Excise duty rates vary by product and quantity. Reduced rates or exemptions may apply depending on the intended use of the goods. Special rules apply to the production, storage and movement of excise goods under excise suspension arrangements.
Current excise rates and detailed product-specific rules can be found on the Estonian Tax and Customs Board homepage.
A packaging undertaking is a person that, in the course of business, packages goods, imports packaged goods or sells packaged goods. A packaging undertaking is subject to packaging excise duty on packaging of goods placed on the Estonian market, this includes packaging of goods packaged in Estonia as well as packaging of goods brought into Estonia from another EU Member State or imported from a third country.
Packaging excise duty is based on the type and weight of the packaging material. In practice, excise duty is payable only to the extent that the applicable recovery requirements are not met, thus a packaging undertaking must keep records of packaging placed on the Estonian market by weight and type of packaging material and must ensure the collection and recovery of the resulting packaging waste.
The recovery obligations may be fulfilled either by the packaging undertaking itself or transferred to an authorized recovery organization, who will arrange recovery of packaging and submit mandatory packaging reports (separate from excise duty reports). A business established outside Estonia that places packaging on the Estonian market must appoint an authorized representative established in Estonia to fulfil its obligations under the Packaging Act.
Estonia is part of the EU Customs Union. Trade between Estonia and other EU Member States is not subject to customs duties, while goods imported from non-EU countries are subject to the EU Common Customs Tariff.
The applicable customs duty depends on the type and origin of the goods. Preferential or zero rates may apply under free trade agreements concluded by the European Union with third countries.
Gambling tax is payable by businesses holding the required Estonian licenses and permits to organize gambling. The tax base and applicable rate depend on the type of gambling organized, including games of chance, remote gambling, betting, lotteries, games of skill and commercial lotteries.
Current tax rates can be found on the Estonian Tax and Customs Board homepage.
Environmental charges are payable by persons who have the right, under an environmental permit or another legal basis, to extract natural resources, discharge pollutants into the environment or dispose of waste. The charge also applies where such activities are carried out without the required right or permit.
Local governments have the authority to impose local taxes, including advertising tax, road and street closure tax, animal tax, entertainment tax and parking charges. In practice, the use of local taxes is limited and varies by municipality.
Tallinn has imposed advertising tax, road and street closure tax and parking charges.
Advertising tax – Tallinn
Advertising tax applies to advertising displayed in Tallinn, including advertising in public places, on private property where it is directed at the public, and on certain public transport vehicles and mobile structures. The standard tax rate is EUR 0.55 per square metre of advertising space per calendar day.
Estonia does not impose a general stamp duty in the traditional sense.
However, state fees are payable for certain official acts and registrations, such as Commercial Register and Land Register entries, court proceedings, and other administrative and registration procedures provided for by law.
The applicable state fee may be a fixed amount or calculated by reference to the value of the underlying transaction.
Estonia does not impose a separate inheritance, estate or gift tax.
Estonia does not impose a general transfer tax on the transfer of property or securities.
Välisriigi saatkondade kohalike töötajate palga maksustamine tekitab praktikas sageli küsimusi. Eelkõige jääb arusaamatuks, miks ei peeta töötasult kinni tulumaksu, miks deklareeritakse töötasu TSD lisa 1-l väljamakse liigiga 11 ning miks peab töötaja tulumaksu ise tasuma.
Grant Thornton Baltic on jõudnud rahvusvahelise maksunduse väljaande International Tax Review (ITR) korraldataval auhinnakonkursil ITR Europe Tax Awards 2026 finalistide hulka.
Kinkekaardid ei ole maksunduse ja raamatupidamise seisukohast pelgalt maksevahendid. Nende käsitlus sõltub nii kinkekaardi liigist kui ka sellest, kas tegemist on kinkekaardi müügi või tasuta üleandmisega. Seetõttu on just praegu hea aeg meelde tuletada, millal ja kuidas kinkekaarte maksustada ning kuidas neid korrektselt raamatupidamises kajastada.
Kui Teil on sarnased väljakutsed ja Teil tekkis küsimusi, võtke palun ühendust meie spetsialistidega.