{"id":6254,"date":"2020-08-06T11:40:59","date_gmt":"2020-08-06T08:40:59","guid":{"rendered":"http:\/\/virtualofficeinestonia.com\/?post_type=ufaq&#038;p=6254"},"modified":"2025-08-06T17:16:02","modified_gmt":"2025-08-06T14:16:02","slug":"what-is-double-taxation-and-can-it-be-avoided","status":"publish","type":"ufaq","link":"https:\/\/virtualofficeinestonia.com\/et\/ufaqs\/what-is-double-taxation-and-can-it-be-avoided\/","title":{"rendered":"What is Double Taxation and Can It Be Avoided?"},"content":{"rendered":"<style>div.ewd-ufaq-faq-title h5 { font-size: 12 !important; }div.ewd-ufaq-faq-post p { font-size: 12 !important; }div.ewd-ufaq-faq-categories, div.ewd-ufaq-faq-tags { font-size: 12 !important; }<\/style><div  class=\"ewd-ufaq-faq-list ewd-ufaq-page-type-load_more ewd-ufaq-category-tabs-\" id='ewd-ufaq-faq-list'>\n\n\t<input type='hidden' name='show_on_load' value='' id='ewd-ufaq-show-on-load' \/>\n<input type='hidden' name='include_category' value='' id='ewd-ufaq-include-category' \/>\n<input type='hidden' name='exclude_category' value='' id='ewd-ufaq-exclude-category' \/>\n<input type='hidden' name='orderby' value='title' id='ewd-ufaq-orderby' \/>\n<input type='hidden' name='order' value='desc' id='ewd-ufaq-order' \/>\n<input type='hidden' name='post_count' value='-1' id='ewd-ufaq-post-count' \/>\n<input type='hidden' name='current_url' value='\/et\/wp-json\/wp\/v2\/ufaq\/6254' id='ewd-ufaq-current-url' \/>\n\t\n\t\n\t<div class='ewd-ufaq-faqs'>\n\n\t\t<div  class=\"ewd-ufaq-faq-div ewd-ufaq-faq-column-count-one ewd-ufaq-faq-responsive-columns- ewd-ufaq-faq-display-style-minimalist ewd-ufaq-can-be-toggled\" id='ewd-ufaq-post-6254-R6GQHx6oh6' data-post_id='6254'>\n\n\t\t\n\t<div class='ewd-ufaq-faq-title ewd-ufaq-faq-toggle'>\n\t\n\t<a class='ewd-ufaq-post-margin'  href='#' role=\"button\">\n\n\t\t<div class='ewd-ufaq-post-margin-symbol ewd-ufaq-square'>\n\t\t\t<span >A<\/span>\n\t\t<\/div>\n\n\t\t<div class='ewd-ufaq-faq-title-text'>\n\n\t\t\t<h5>\n\t\t\t\tWhat is Double Taxation and Can It Be Avoided?\t\t\t<\/h5>\n\n\t\t<\/div>\n\n\t\t<div class='ewd-ufaq-clear'><\/div>\n\n\t<\/a>\n\t\n<\/div>\n\t\n\t<div class='ewd-ufaq-faq-body' >\n\n\t\t\n\t\t\t\n\t\t\n\t\t\t<div class='ewd-ufaq-post-margin ewd-ufaq-faq-post'>\n\t<h4><span style=\"color: #ff6600\">Understanding tax treaties and separate obligations.<\/span><\/h4>\n<div class=\"relative flex basis-auto flex-col -mb-(--composer-overlap-px) [--composer-overlap-px:55px] grow overflow-hidden\">\n<div class=\"relative h-full\">\n<div class=\"flex h-full flex-col overflow-y-auto [scrollbar-gutter:stable_both-edges] @[84rem]\/thread:pt-(--header-height)\">\n<div class=\"@thread-xl\/thread:pt-header-height flex flex-col text-sm pb-25\">\n<article class=\"text-token-text-primary w-full focus:outline-none scroll-mt-[calc(var(--header-height)+min(200px,max(70px,20svh)))]\" dir=\"auto\" data-turn-id=\"d0294c63-3914-4d4f-bceb-b43cb0db90aa\" data-testid=\"conversation-turn-113\" data-scroll-anchor=\"true\" data-turn=\"assistant\">\n<div class=\"text-base my-auto mx-auto pb-10 [--thread-content-margin:--spacing(4)] @[37rem]:[--thread-content-margin:--spacing(6)] @[72rem]:[--thread-content-margin:--spacing(16)] px-(--thread-content-margin)\">\n<div class=\"[--thread-content-max-width:32rem] @[34rem]:[--thread-content-max-width:40rem] @[64rem]:[--thread-content-max-width:48rem] mx-auto max-w-(--thread-content-max-width) flex-1 group\/turn-messages focus-visible:outline-hidden relative flex w-full min-w-0 flex-col agent-turn\">\n<div class=\"flex max-w-full flex-col grow\">\n<div class=\"min-h-8 text-message relative flex w-full flex-col items-end gap-2 text-start break-words whitespace-normal [.text-message+&amp;]:mt-5\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"aac0eecf-8a9c-4562-94c0-41be7040adc0\" data-message-model-slug=\"gpt-4o\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose dark:prose-invert w-full break-words light markdown-new-styling\">\n<p data-start=\"114\" data-end=\"298\"><strong data-start=\"114\" data-end=\"133\">Double taxation<\/strong> refers to paying <strong data-start=\"151\" data-end=\"221\">the same type of tax on the same income in two different countries<\/strong>\u2014a situation that often affects cross-border business owners or shareholders.<\/p>\n<p data-start=\"300\" data-end=\"797\">This can usually be <strong data-start=\"320\" data-end=\"331\">avoided<\/strong> if the country where your <strong data-start=\"358\" data-end=\"384\">company is established<\/strong> (e.g. Estonia) and the country where <strong data-start=\"422\" data-end=\"447\">you personally reside<\/strong> have signed a <strong data-start=\"462\" data-end=\"489\">Double Tax Treaty (DTT)<\/strong>. These treaties determine which country has the right to tax specific types of income and help prevent you from being taxed twice on the same profit.\u00a0<\/p>\n<p data-start=\"799\" data-end=\"1031\">However, <strong data-start=\"808\" data-end=\"831\">if no treaty exists<\/strong>, double taxation may apply. For instance, since Estonia does not have a tax treaty with <strong data-start=\"920\" data-end=\"930\">Russia<\/strong>, a company or individual may end up paying tax <strong data-start=\"978\" data-end=\"1011\">both in Estonia and in Russia<\/strong> on the same income.<\/p>\n<p data-start=\"1033\" data-end=\"1119\">It\u2019s also important to note that <strong data-start=\"1066\" data-end=\"1118\">corporate and personal income taxes are separate<\/strong>:<\/p>\n<ul data-start=\"1121\" data-end=\"1350\">\n<li data-start=\"1121\" data-end=\"1211\">\n<p data-start=\"1123\" data-end=\"1211\">When a company distributes dividends, <strong data-start=\"1161\" data-end=\"1185\">corporate income tax<\/strong> is paid on that amount.<\/p>\n<\/li>\n<li data-start=\"1212\" data-end=\"1350\">\n<p data-start=\"1214\" data-end=\"1350\">When a private person receives those dividends, they may also owe <strong data-start=\"1280\" data-end=\"1303\">personal income tax<\/strong>\u2014depending on their country of tax residency.<\/p>\n<\/li>\n<\/ul>\n<p data-start=\"1352\" data-end=\"1501\">This is <strong data-start=\"1360\" data-end=\"1394\">not considered double taxation<\/strong>, as it involves two different taxpayers (a legal entity and a natural person) and two different tax types.<\/p>\n<hr data-start=\"1503\" data-end=\"1506\" \/>\n<p data-start=\"1508\" data-end=\"1667\" data-is-last-node=\"\" data-is-only-node=\"\"><strong data-start=\"1508\" data-end=\"1520\">Lead-in:<\/strong><br data-start=\"1520\" data-end=\"1523\" \/>Double taxation can significantly affect your company\u2019s profits and personal income\u2014but tax treaties between countries often provide a solution.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"flex min-h-[46px] justify-start\">\n<div class=\"touch:-me-2 touch:-ms-3.5 -ms-2.5 -me-1 flex flex-wrap items-center gap-y-4 p-1 select-none touch:w-[calc(100%+--spacing(3.5))] -mt-1 w-[calc(100%+--spacing(2.5))] duration-[1.5s] focus-within:transition-none hover:transition-none pointer-events-none [mask-image:linear-gradient(to_right,black_33%,transparent_66%)] [mask-size:300%_100%] [mask-position:100%_0%] motion-safe:transition-[mask-position] group-hover\/turn-messages:pointer-events-auto group-hover\/turn-messages:[mask-position:0_0] group-focus-within\/turn-messages:pointer-events-auto group-focus-within\/turn-messages:[mask-position:0_0] has-data-[state=open]:pointer-events-auto has-data-[state=open]:[mask-position:0_0]\">\u00a0<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<p><\/p>\n<\/div>\n\t\t\n\t\t\t<div class='ewd-ufaq-faq-custom-fields'>\n\n\t\n<\/div>\n\t\t\n\t\t\t<div class='ewd-ufaq-faq-categories'>\n\t\n\tCategory:\n\t\n\t\tTaxis in Estonia\n\t\n<\/div>\n\t\t\n\t\t\t<div class='ewd-ufaq-faq-tags'>\n\t\n\tTags:\t\n\t\n\t\tEstonia, \n\t\n\t\tTax\n\t\n<\/div>\n\t\t\n\t\t\t<div class='ewd-ufaq-ratings'>\n\t\n\t<div class='ewd-ufaq-ratings-label'>\n\t\tDid 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Understanding tax treaties and separate obligations. Double taxation refers to paying the same type of tax on the same income in two different countries\u2014a situation that often affects cross-border business owners or shareholders. This can usually be avoided if the country where your company is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","template":"","ufaq-category":[320],"ufaq-tag":[332,334],"class_list":["post-6254","ufaq","type-ufaq","status-publish","hentry","ufaq-category-tax","ufaq-tag-estonia","ufaq-tag-tax"],"jetpack_likes_enabled":false,"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/virtualofficeinestonia.com\/et\/wp-json\/wp\/v2\/ufaq\/6254","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/virtualofficeinestonia.com\/et\/wp-json\/wp\/v2\/ufaq"}],"about":[{"href":"https:\/\/virtualofficeinestonia.com\/et\/wp-json\/wp\/v2\/types\/ufaq"}],"author":[{"embeddable":true,"href":"https:\/\/virtualofficeinestonia.com\/et\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/virtualofficeinestonia.com\/et\/wp-json\/wp\/v2\/comments?post=6254"}],"wp:attachment":[{"href":"https:\/\/virtualofficeinestonia.com\/et\/wp-json\/wp\/v2\/media?parent=6254"}],"wp:term":[{"taxonomy":"ufaq-category","embeddable":true,"href":"https:\/\/virtualofficeinestonia.com\/et\/wp-json\/wp\/v2\/ufaq-category?post=6254"},{"taxonomy":"ufaq-tag","embeddable":true,"href":"https:\/\/virtualofficeinestonia.com\/et\/wp-json\/wp\/v2\/ufaq-tag?post=6254"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}