Estonia

Overview

Last reviewed - 03 January 2020

Estonia is located in Northeastern Europe, bordered by the Baltic Sea to the west, the Gulf of Finland to the north, Latvia to the south, and Russia to the east. It is divided into 15 counties and 79 local municipalities, with Tallinn as its capital city. Estonian is the official language of Estonia, and the currency is the euro (EUR).

After centuries of German, Danish, Swedish, Polish, and Russian rule, Estonia attained independence in 1918. Incorporated into the USSR in 1940, an action never recognised by the United States, it regained its freedom in 1991 with the collapse of the Soviet Union. Since all the occupational forces left in 1994, Estonia has been free to promote economic and political ties with Western Europe.

Estonia has a modern, market-based economy and one of the higher per capita income levels in Central Europe and the Baltic region. Estonia's successive governments have pursued a free market, pro-business economic agenda and have wavered little in their commitment to pro-market reforms. The current government has pursued relatively sound fiscal policies that have resulted in balanced budgets and low public debt. Estonia's priority has been to sustain high growth rates, which are, on average, 6% per year. The economy benefits from strong electronics and telecommunications sectors and strong trade ties with Finland, Sweden, and Germany.

Estonia joined both the North Atlantic Treaty Organization (NATO) and the European Union (EU) in the spring of 2004. Estonia became the Organisation for Economic Co-operation and Development's (OECD) 34th member country on 9 December 2010. Estonia adopted the euro on 1 January 2011.

At PwC Estonia, more than 200 specialists provide audit, tax, legal, and business advisory services to more than 300 clients, including leading domestic and multinational companies and public services institutions. While we have experience working in all industries represented in Estonia, we have also built particularly strong expertise in areas such as banking, insurance, wholesale trade, consumer goods, forestry, real estate, energy, telecommunications, and infrastructure. The purpose of the Tax Services practice of PwC Estonia is to assist clients in finding tax efficient business solutions and managing tax risks.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

20 (undistributed profits are tax exempt)

Corporate income tax (CIT) due dates
CIT return due date

By the tenth day of the month following a taxable distribution or payment.

CIT final payment due date

By the tenth day of the month following a taxable distribution or payment.

CIT estimated payment due dates

NA

Personal income tax (PIT) rates
Headline PIT rate (%)

20

Personal income tax (PIT) due dates
PIT return due date

30 April

PIT final payment due date

1 October

PIT estimated payment due dates

NP

Value-added tax (VAT) rates
Standard VAT rate (%)

20

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

Resident corporate: 0 / 0 / 0;

Resident individual: 0 or 7 / 20 / 20;

Non-resident corporate: 0 / 0 / 10;

Non-resident individual 0 or 7 / 0 / 10

Capital gains tax (CGT) rates
Corporate capital gains tax rate (%)

NA

Individual capital gains tax rate (%)

Capital gains are subject to the normal PIT rate.

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)

NA

Inheritance and gift tax rates
Inheritance tax rate (%)

NA

Gift tax rate (%)

NA

NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.