What is a TIN number in Estonia?
There is no tax ID in Estonia.
An 8-digit company registration code and your 11-digit personal identity code (isikukood) should be enough for all institutions and services in Estonia.
FAQ Tag: Tax
When will the share capital be returned?
Only the paid-in share capital can be returned.
The authorized capital and the funds remaining in the bank account can be returned to the owner 4 months after the start of the liquidation process.
What questions are asked when submitting a VAT application?
The questions are what the Tax and Customs Board wants to know when accepting the application.
1. Has the desire to register arisen voluntarily or compulsorily?
2. Brief description of business activity, 3-4 sentences.
3. 2-3 main business partners.
4. Sources of business financing: loan, equity or grant?
5. Are there plans to register employees?
Registration of non-residents
Non-residents not registered in the commercial register in Estonia and operating in Estonia through a permanent establishment or non-residents not having a permanent establishment but being employers in Estonia have to register with the Estonian Tax and Customs Board. Likewise, non-resident employees and recipients of payments not having an Estonian personal identification code have to be registered with the Estonian Tax and Customs Board.
Closer look: https://www.emta.ee/en/business-client/registration-business/non-residents-e-residents/registration-non-resident
How are dividends taxed?
In case your company has made profit, it is possible to pay dividend to the shareholders. Shareholders receive dividends proportionately to the share of the company that they own.
NB! Before the company is allowed to pay dividend, the company’s share capital needs to be paid into the company bank account.
After you have made the share capital payment, please inform your e-Residency hub accountant, so we could formulate the changes in the company registration documents
Dividends are taxed with 20% corporate income tax.
Example: A company decides to spend €100,000 of its accumulated profit to make a dividend payment. This sum is divided in the following manner:
- €80,000 is paid out to company shareholders according to their shares of the company
- €20,000 € is paid as the Estonian company’s corporate income tax to the Estonian Tax and Customs Board (the tax payment is made no later than on the 10th day of the following calendar month)
In the case described above, the €80,000 which is received by the company’s shareholders, may be considered their income in the country where they are tax residents. It may therefore be taxed with a personal income tax in their country of residence. Please check with a tax advisor in your country of residence to find out if this applies to you.