Taxation of international executives
Residence is the decisive factor in determining the scope of individual income tax liability in Estonia.
While individuals resident in Estonia are subject to tax on worldwide income (with some exceptions as regards income from employment abroad), non-residents are liable to income tax on Estonian-sourced income and income received from non-resident legal entity or via permanent establishment for performance of functions of the member of management or supervisory body of the legal entity or permanent establishment in Estonia.
A non-resident is subject to a final withholding tax of 21 percent on Estonian source income.
The official currency of Estonia is the Euro (EUR). Estonia has a decimal currency system with 100 cents making up one Euro (EUR).
Herein, host country/jurisdiction refers to the country/jurisdiction to which the employee is assigned. Home country/jurisdiction refers to the country/jurisdiction where the assignee normally lives when they are not on assignment.
All information contained in this document is summarized by KPMG Baltics OÜ, the Estonian member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on based on the Estonian Income Tax Act, Social Tax Act, the Web sites of the Estonian Tax and Customs Board and Ministry of Financial Affairs.
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KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.