The Estonian government has approved significant changes related to taxes, including VAT, corporate taxes, personal income tax, among others. These tax updates in Estonia are mostly related with the increase in tax pressure on both taxpayers, individually and at a corporate level.
Here below a summary as follow:
VAT suffers an increase for most sectors:
The standard VAT will increase from the current 20% to 22%, despite the fact that taxpayers could apply a VAT of 20% to all contracts signed prior to May 2023 stating that VAT applicable was 20%.
Starting January 2025, VAT on accommodation will increase from 9% to 13%.
In addition, VAT on publications will increase to 9% (from the current 5%) at the beginning of 2025
In relation to CIT, the applicable rate will increase to 22% in 2024.
The tax on tobacco and alcohol will also experience an increase during the period 2024-2025 by 5%: the last update of this tax was in 2018. The tax on gambling will grow to 6% in 2024 and 7% in 2026.
In relation to the personal income tax, a “uniform basic tax exemption” will be recognized for all taxpayers income below 700 euros per month, as well as those with annual incomes below 8,400 euros.
Do you need help in Estonia?
Auxadi can become your ideal partner in Estonia. We offer a one stop shop value added outsourcing services in the areas of accounting and reporting, tax compliance, payroll management and representation services, among others.
Local Knowledge – International Coverage
Founded in 1979, Auxadi is a family-owned business working for multinational corporations, private equity funds and real estate funds. It’s the leading firm in international accounting, tax compliance and payroll services management connecting Europe and the Americas with the rest of the world, offering services in 50 countries. Its client list includes many of the top 100 PERE companies. Headquartered in Madrid, with offices in US and further 22 international subsidiaries, Auxadi serves 1,500+ SPVs across 50 jurisdictions.
All information contained in this publication is up to date on 2023. This content 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 content, and, to the extent permitted by law, AUXADI 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.