Tax System and Administration

Investor Considerations:

• Main principles of Estonian tax policy: simple tax system, broad tax base and low rates.
• The aim of the Estonian Government is to shift the tax burden from labor to consumption.
• Flat income tax rate since 1994 (flat income tax rate at 21% applies to both individuals and companies).
• Unique corporate tax system since 2000: all undistributed corporate profits are tax-exempt.
• Local taxes play an insignificant role in the Estonian tax system.
• Estonia operates a self-assessment system.
• The Government's intention is to improve tax administration (electronic tax administration is well established).

• Tax system
• Direct and indirect tax burden
• Principal taxes
• Legislative framework
• Tax treaties
• Tax returns and payments
• Assessments
• Appeals
• Withholding taxes
• Tax audits
• Penalties
• Advance clarifications