Virtual Office FAQ

Applicants must have access to “Submit a VAT registration application”.

In order to grant access, the authorized person must enter the e-MTA as a representative and select “Settings”> “Access Rights”> “Representative Access Rights”.

On the Access Rights Administration page, you must enter the user ID of the user to be authorized and select “Access to VAT registration” under the “Individual rights” section.

Log in: https://maasikas.emta.ee/v1/login?authst=eitUBZa5iT

 

Category: Tax

E-residency in Estonia does not automatically mean tax residence. It only provides the opportunity to use the e-services that the Estonian state offers. Among them is the establishment of the company. If your turnover is less than EUR 40,000 per the calendar year, you don’t need to add VAT to your invoices. If the turnover is generated outside Estonia, you do not have to add VAT to your invoices if you exceed this amount. If the employees do not work in Estonia, the labour tax according to Estonian law does not have to be taken into account.

 

Category: Tax

An e-resident is a non-resident according to Estonian tax legislation.

Only income derived in Estonia is taxed in Estonia.

If there is no activity or income derived from Estonia, taxes should be paid in the country where the service is provided or activity is done or income is derived from, the pure e-residency alone does not influence the foreign or Estonian taxation.

The Estonian e-residency does not automatically exempt from taxation elsewhere.

An Estonian company established by an e-resident is an Estonian tax resident.

Category: Tax

On 1 July 2009, the Economic Operators Registration and Identification System (EORI) was introduced in all EU Member States for identification of economic operators as regards their customs related activities. Economic operators engaged in foreign trade who register themselves in the EORI system are given unique identification numbers (EORI numbers), which will be forwarded to the EORI central database.

The use of an EORI number enabling to identify economic operators within the entire EU customs territory became mandatory for all economic operators engaged in import or export of goods, transit transportations or when performing other customs related activities.

Category: Tax

After payment, we will send you questions that you need to answer. We fill in all the necessary forms. If you are an e-resident you can digitally authorize us to submit the application on behalf of the company. If you are not an e-resident you need to come to Tallinn or authorize our representative to act on behalf of the company. We send the application to the tax office. If they have additional questions, we help with the answers.

Category: Tax
Tag: VAT

An e-resident is a non-resident according to Estonian tax legislation.

Only income derived in Estonia is taxed in Estonia.

If there is no activity or income derived from Estonia, taxes should be paid in the country where the service is provided or activity is done or income is derived from, the pure e-residency alone does not influence the foreign or Estonian taxation.

The Estonian e-residency does not automatically exempt from taxation elsewhere.

An Estonian company established by an e-resident is an Estonian tax resident.

Category: Tax

Residents pay tax on their worldwide income. Taxable income includes, in particular, income from employment (salaries, wages, bonuses and other remuneration); business income; interest, royalties, rental income; capital gains; pensions and scholarships (except scholarships financed from the state budget or paid on the basis of law). Taxable income does not include dividends paid by Estonian or foreign companies when the underlying profits have already been taxed.

The personal income tax is withheld from the employees’ gross salary every month and paid by the employer.

Non-residents pay personal income tax only on their income received from Estonian sources. Taxable income in Estonia includes:

  • income from work under a labour contract or contractor’s agreement in Estonia
  • income from business carried out in Estonia
  • interest income received from Estonia (only if it is substantially higher than that of similar debt claims)
  • royalties
  • income from the lease of assets located in Estonia
  • gains from disposal of assets located in Estonia
  • directors’ fees paid by Estonian enterprises; » income of a sportsman or an artist from his or her activities in Estonia
  • pensions and scholarships
Category: Tax

The rate of social tax is 33% (20% for social security and 13% for health insurance). Besides the social tax, unemployment insurance tax at a rate of 0.8% must be paid on the gross salary (an additional 1.6% is withheld from the employees’ salary).

Employers registered in Estonia (including the permanent establishments of foreign entities) must pay social tax on all payments made to employees, except on those specifically exempted by law.

Category: Tax

0%

There is no corporate income tax on retained and reinvested profits.

Tax on distributed profits is 14-20%.

Distributed profits include:

  • corporate profits distributed in the tax period
  • gifts, donations and representation expenses
  • expenses and payments not related to business
  • transfer of the assets of the permanent establishment to its head office or to other companies

Dividends paid to non-residents are no longer subject to withholding tax, irrespective of participation in the share capital of the distributing Estonian company. However, various withholding taxes may still apply to other payments to non-residents if they do not have a permanent establishment in Estonia or unless the tax treaties otherwise provide.

As the tax period for corporate entities is a month, income tax must be returned and paid monthly by the 10th day of the following month.

It is possible to run your company without any corporate income taxation at all.

Category: Tax

The standard rate of VAT is 20%, the reduced rate is 9% and 0% in some cases.

The taxable period is one calendar month, and VAT returns must be submitted to the tax authority by the 20th day of the month following the taxable period.

Usually, Tax and Customs Board will register with the VAT for those companies that engage in economic activities or prove their commencement (§ 20 (4) of the Value Added Tax Act).

As a result, the registration of non-operating ready-made companies is usually not possible for the sale of companies by sellers of the companies.

It is possible to buy formerly operating companies, including VAT registered companies. In this case, the registration of the company as a VAT taxpayer will be retained.

Category: Tax

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