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Generic Tax Name Social security contribution - Social tax
Tax name in the national language
Tax name in English Actual social contributions
Member State EE-Estonia
Tax in force since 1992/01/01
If abolished, date on which the tax ceases to apply
Business version date 2011/01/01
Version date 2011/08/19
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Social Tax Act

Passed 13 December 2000; State Gazette (RT) I 2000, 102, 675

entered into force 1 January 2001, last amended 16.12.2009 (RT I 2010, 1, 2)

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

 
Geographical Scope Estonia.
 
Taxpayers
The base or rate of social security contributions paid by Employees on the income of employees and of blue collar workers Rates are identical
Bases are identical

Comments

Domestic-source income of non-residents is Subject to SSCer
Not Subject to SSCer

Comments


Comments

1.A person, who makes payments specified in § 2 of the Social Tax Act (except business income of sole proprietor):

-resident legal persons;

-natural persons;

-non-residents, who have a permanent establishment in Estonia or who make payments specified in subsection 2 (1) of the Social Tax Act;

-state, rural municipality and city authority.

2.A sole proprietor on business income.

3.The state, rural municipality or city in the cases specified in § 6 of the Social Tax Act.

 
Tax object and basis of assessment
Employees pay social security contributions for








Comments

Base for all contributions listed here above is the same Yes No

As general rule, the income subject to Social Security Contributions of Employees includes























Comments

Income considered Domestic income
Worldwide income
Comments

Benefits in kind

The following benefits in kind are usually (partially or fully) subject to social security contributions paid by Employees












Comments


Comments

-Wages and other remuneration paid to employees and public servants in money;

-remuneration paid to members of the management or controlling bodies of legal persons and to the trustee in bankruptcy and members of the bankruptcy committee in the bankruptcy proceedings of a natural person;

-the business income of sole proprietors, as defined in § 14 of the Income Tax Act, after deductions relating to enterprise and permitted in the Income Tax Act have been made;

-remuneration paid to natural persons on the basis of contracts for services, authorisation agreements or contracts under the law of obligations entered into for the provision of other services;

-fringe benefits within the meaning of the Income Tax Act, expressed in monetary terms, and on income tax payable on fringe benefits;

-benefits paid pursuant to the Unemployment Insurance Act.

 
Deductions, Allowances, Credits, Exemptions
Capped contributions No cap
Cap in monetary units:
Cap in % of the tax base:

Reduction

The reduction is
No reduction
A lump-sum amount
In percentage of base:
Based on salary
Capped
Comments

Allowances
The basic yearly allowance for an individual amounts to:
The basic yearly allowance for a couple amounts to:
Additional allowance for 1st child
Additional allowance for 2nd child
Additional allowance for 3rd child
Additional allowance for additional child
Additional allowance for old age dependents
Comments

Credits
The basic yearly credit for an individual amounts to:
The basic yearly credit for a couple amounts to:
Additional credit for 1st child
Additional credit for 2nd child
Additional credit for 3rd child
Additional credit for additional child
Additional credit for old age dependents

Social Security Contributions paid by Employees are tax deductible Yes No


Comments

Exempted payments and benefits are:

-compensation for official travel, accommodation and other expenses, daily allowances and remuneration for business travel abroad paid to a public servant, an employee or a member of the management or controlling body of a legal person;

-compensation for service or employment related use of a personal automobile paid to a public servant, employee, or member of the management board;

-payments to residents of a receiving state who are employed in a foreign mission of Estonia;

-remuneration specified paid to non-residents by an Estonian resident if the work is done in a foreign state;

-remuneration paid to non-residents who operate as sole proprietors in a foreign state and who certify that social security charges or contributions are paid on such remuneration in that foreign state;

-payments made to members of the Riigikogu (the parliament) pursuant to § 11 of the Members of the Riigikogu Official Wages, Pension and Other Social Guarantees Act;

-payments made pursuant to § 26 of the Police Service Act and § 160 of the Defence Forces Service Act;

-amounts payable to persons who are in custodial institutions on the basis of court judgments;

-the cost of meals given free of charge to members of the crews of ships during voyages and to members of the crews of civil aircraft during flights, which does not exceed 90 EEK per day per person;

-payments made pursuant to § 3 of the President of the Republic Official Benefits Act, § 121 of the Salaries of State Public Servants Appointed by Riigikogu or President of the Republic Act and § 62 of the Foreign Service Act;

Tax credit:

If social tax for a sole proprietor is also paid by his or her employer or, pursuant to § 6 of the Social Tax Act, by the state and if the person's monthly business income is less than the minimum, the amount of social tax payable on the basis of his or her business income may be less than the amount of tax calculated on the basis of the minimum on the condition that the total amount of social tax payable for him or her by the employer or, pursuant to § 6 of the Social Tax Act, by the state on the basis of business income is at least equal to the amount of tax calculated on the basis of minimum.

 
Rate(s) Structure
The following rates apply to Social Security Contributions paid by Employees
Pensions

Health care

Unemployment

Child care

Work-related illnesses and/or accidents

Education leave

Maternity leave

Others

Comments

Special surcharges

There are special surcharges in the form of:


Comments

The rate of social tax is generally 33 per cent of the taxable amount. In particular cases (Art 6 Sec 1 Clauses 6, 61,8, 9, 11 and 13 of the Social Tax Act) it is 13% of the taxable amount.

 
Tax due date

The taxable period for social tax is one calendar month (except sole proprietor). The tax due date is the tenth day of the month following the taxable period.

The taxable period for social tax on the business income of a sole proprietor is one calendar year and his tax due date is the 1st October of year following the taxable period.

 
Tax collector

Estonian Tax and Customs Board.

 
Special features

Minimum and maximum obligation:

For employers there is a minimum obligation on social tax to be paid, which is equal to 33% of the minimum envisaged by the Social Tax Act. In 2009 the minimum is 4,350 EEK per month. The minimum social tax obligation of 1,436 EEK (4,350 x 33%) has to be paid monthly for each employee (except in the case of a person receiving a state pensions, a parents raising child of up to 3 years of age or three or more children, a pupil and a student).

Sole proprietors pay social tax on their business income, but annually not less than the amount calculated from the minimum (4,350 x 12 = 52,200 EEK in 2009) and not more than the amount calculated from fifteen-fold minimum wage (4,350 x 15 x 12 = 783,000 EEK in 2009).

Special cases:

The law enacts several special cases of paying social tax when tax is paid by the state and the rural municipality or city (e.g. for parent raises child of up to 3 years of age or three or more children; for persons receiving unemployment benefit). In special cases social tax shall be paid based on the aforementioned minimum.

 
Economic function







Comments

 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d611

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2009 28,790.20 EEK
2008 29,586.90 EEK
2007 26,339.10 EEK
2006 21,179.60 EEK
2005 17,943.50 EEK
2004 15,684.80 EEK
2003 14,440.30 EEK
2002 13,356.40 EEK
2001 11,633.60 EEK
2000 10,538.70 EEK
1999 9,285.10 EEK
1998 8,814.80 EEK
1997 7,951.00 EEK
1996 6,617.60 EEK
1995 5,319.80 EEK

Comments