Categories: General
Date: Jul 16, 2012
Title: Maksud Eestis
Tänapäeval, EL-s, Eestis on võrratu võimalused maksukoormuse osas, kuna selle jurisdiktsiooni on võimalik nimetada “on-shore’ks”, kuid samal ajal tulumaksu määr on 0%.
In Estonia, there are many statutory "concessional" business opportunities. Here is one, though not related to aspects of taxation, but is unique in its financial and legal nature of the EU. In Estonian legislation means that at the time of establishment of companies do not need to form its share capital. He simply declared in an amount not less than 2500 euro's. In the statutes defined period for its formation, which can be installed on the year and up to infinity. But it should be noted that if the share capital has not been formed, the owner (the founder) is responsible own funds in the amount of the declared amount.
Below is the basic tax rate for companies in Estonia, as well as denote terms under which they arise and applied.
Taxes for companies in Estonia (in brief):
- Income tax from enterprises - 0% (the concept of income tax in the Estonian legislation does not, but there is the concept of taxation of profit distribution, which applies only to the payment of dividends);
- Value added tax (VAT) - 20% (in the case arises, if an entity is taxable, that is a VAT payer);
- Income tax on dividends or profits tax on the distribution of - 21/79 (approximately - 26.6%);
- Social tax - 33%
- The tax on unemployment from the salary of the employee from - 0.3% to 0.6% (applies only to residents of Estonia).
In Estonia, for companies there are categories of taxes as excise duties, land tax, gambling tax on heavy vehicles, the customs duty.
Taxation of natural persons in Estonia:
- Income tax on individuals - 21% (if calculated and paid monthly salary).
The minimum wage is - 296 Euro.
Member of the Board in the Estonian company can carry out commercial activities. You do not need to hire a Director, director's powers and activities are determined by contract and regulated by the Law of Estonia "On the employment contract."
Board member of the Estonian company (provided that it is not Estonian resident) has the right not to charge a salary and not pay off her taxes. However, he is entitled to open accounts on behalf of the Estonian company, and sign the contract. If a citizen board member of the CIS countries, it not need a work permit. He has the right to conduct commercial activities of the company in full. Please do not be confused with a working visa category D. In this case, the manager of the company - a member of the Board is only entitled to carry out activities on behalf of and in the interests of the company, but without a presence on the territory of Estonia and the Schengen area. Entry and his physical presence can only be made on the basis of the opening of any visa category C, which allows stays of up to 180 days per year and corresponds to the category "business trip", so-called "business" visa.
Now look a closer at aspects of the tax obligations of Estonian companies.
In 2000, Estonia established a statutory rate of 0% income tax from legal entities. This applies only to those companies that have received but not distributed profits of the firm. What means not distributed? This means that owners share of the partnership (LLC) or shareholders (AS) at the end of the fiscal year are not accrued and not paid a dividend. If the company's shareholders (founders of a limited liability company, according to Estonian - OÜ) decide to distribute profits as dividends, the company pays for its shareholders, or shareholders of a tax of 21/79 (approximately 26.6%). If the Estonian company at the end of the fiscal year does not pay dividends, it means a tax does not arise. It should be noted that here we are talking about and have in mind the concept of the so-called rate of 0% corporate income tax or corporate income tax.
We note and emphasize the following fact. The Estonian company has the right to accumulate on the settlement account money while in fact the end of the fiscal year, it have no income tax! Also, the Estonian company has the right to reinvest these funds in a tax free. Of course we should take into account the various aspects of international law and existing conventions. So, with a number of countries, Estonia has agreements on avoidance of double taxation, according to which set different tax rates on percents in the foreign loan. But in any case, the "body" of the loan is tax-exempt, taxable only percents . In each case, the construction of tax planning schemes must clearly take into account the conventions and international treaties.
Now consider the question of when an Estonian company pays money to low-tax jurisdiction. Here we must be extremely careful and examine the list of so-called "white" and "black" jurisdictions. Estonian legislation "in its own way," classifies the concept of "offshore", or as legally defined concept - low-tax jurisdiction. In this, shall we say "black list" are Liechtenstein, United Arab Emirates (including Dubai), Hong Kong, but in "white list" from the 2010 Isle of Man is present, and in 2012 Jersey. In the case of transfer to the "black list" jurisdiction the Estonian company should pay the VAT , who are regulated by the Law "On income tax in Estonia," and is 21%. But there is an exception to the rule. If your company has continued work with one of the jurisdictions appearing in the "black list", it may not be applicable tax liability under the income tax. How can this be achieved? Only official! In Estonia, we should apply to the tax department with a request form to which to attach all supporting documents (contracts, etc.), and then, after agreeing with the tax department of legal and fiscal regime of each transaction (subject to regular business activities an offshore company), arising from the transfer payments to low tax jurisdictions, will be classified as a single transaction to withdraw cash. The cost of the fee for consideration of the application of this category is 700 Euro. So you get an official document which is your "special" case, has a permanent category of business activity and not subject to the Law "On income tax in Estonia". The document, obtained by you, acquires the status of the so-called "Indulgences", which later makes you untouchable in terms of financial transactions, as defined in this document.
If the founder of the Estonian company is an offshore company (from a list of countries covered by the definition of "low tax", the so-called "black list"), whereas in this case the Estonian company holds an additional income tax rate - 21% (provided that the offshore company owns more than 15% of the corporate rights of the Estonian company).
Estonian law defines a list of non "offshore" or low-tax, that is in which there not a low tax rate:
See the “WHITE LIST”.
The list of countries that are classified as low-tax:
See the "BLACK LIST".
Estonia has concluded agreements on avoidance of double taxation with the following countries:
Lithuania
Poland
United Kingdom
Czech Republic
Denmark
Finland
Sweden
Norway
Iceland
France
Canada
Ukraine
Belorussia
Kazakhstan
Italy
Austria
Latvia
Netherlands
Germany
Belgium
Malta
Moldova
Armenia
Portugal
Croatia
Hungary
Ireland
China
USA
Spain
Turkey
Slovenia
Luxembourg
Slovakia
Romania
Switzerland
Isle of Man
Jersey
Taxes on wages of non-residents
In Estonia, if a board member of the Estonian company is nonresident, with his salary withheld 21% of the income tax and is charged 33% of social tax. If employee is nonresident and work under a labor contract and perform their duties outside of Estonia, the taxes are not paid.
In the case where the employee is non-resident in the territory of Estonia, the income tax is withheld at a rate of 21%, based on the amount of wages paid of nonresident is payed a social tax at a rate of 33%. We draw your attention to the next. If an employee of the CIS countries, it means that should obtain a work visa category D, and the employer must open this vacancy in the Department of Employment in the EU, and then beyond. The procedure for obtaining permission to work on bringing an alien can take anywhere from 3 to 6 months. But, there is a simple and affordable way to recruit the employee like a member of the board of the Estonian company. Board members in OÜ may be up to 5 persons.
Value added tax (VAT)
VAT tax in Estonia is 20%. To avoid confusion, the Estonian VAT - VAT. This provision is contained in the Act of Estonia "On Value Added Tax." Not exempt from VAT sales of goods and services in the event of business on the territory of Estonia. Also, when you import into Estonia of goods and services there is the obligation of registration as a taxable sales tax. Legislatively determined that the company must register taxable (VAT payer) when the amount of income from the beginning of the calendar year will exceed 16 000 Euro. However, many exceptions of this rule, for example - if the Estonian company purchases goods outside the EU, and also sells them outside the EU, that means not any VAT within the EU, nor in most of Estonia. Such a company may not register as a payer of VAT. And the tax authorities will be denied such registration.
For a better understanding arises whether your company's obligation to register as a payer of VAT (VAT), you should examine in detail the provisions of the Act of Estonia "On Value Added Tax." The company's specialists DKLex Consulting Group, if necessary, ready to provide professional analysis of your business strategy, or develop a working scheme in accordance with the laws of Estonia.
It should be noted that to obtain a VAT number is required a personal visit to a Member of the Board of your company or actual employee's to tax department of Estonia. You will be given passwords to access electronic register of the taxpayer's turnover for the submission of declarations. In the future, by proxy you can delegate of our company submit VAT reporting.
Reporting companies in Estonia.
Accounting report and declarations provided in the following state agencies:
1. In the Estonian Tax Department, if the Estonian company registered sales tax, that is, has a VAT number, or has employees. Reports shall be on a monthly basis:
the 10th day - income and social taxes and
the 20th day of the - on the sales tax.
If the Estonian company has a turnover in the EU, on a monthly basis to the 20th day of the surrender the «Report on turnover of goods within the EU».
2. In the commercial register in Estonia. Each year, the 30th June the Estonian company must provide annual declaration indicating its financial activities for the previous financial year (from 01.01 to 31.12).
3. To the Department of Statistics. Selectively request can come to your company, but there are obligations to provide a quarterly statistical report, which shows the parameters salaries of members of directors and employees, as well as provide information about a activities of the company. This information is purely statistical in nature.
4. To the Central Bank of Estonia. If the company carries out foreign trade activities, the Central Bank may request. Otherwise, there is an obligation to provide quarterly reports.
If the Estonian company is not taxable, it submit only an annual report.
Audit
Estonian company must be audited when the company have two of three criteria: - is:
- Implementation of or income from the 2 million Euro;
- Balance sheet total of EUR 1 million;
- Staff of 30 people.
or one of three criteria:
- Implementation of or income from the 6 million euro;
- Balance sheet total of 3.5 million Euros and above;
- Number of employees 90 and above.
Optimization of taxation
Information about the legal tax optimization in Estonia you can be viewed on our website under
"TAX PLANNING ".
For all practical matters, please contact our experts via the "CONTACT".
If you decide to register a company in Estonia, in the chapter "CONTACT" you can fill out the contact form.
It should be noted that our company enters into a contract with a client, according to which we are fully responsible for the timing and quality service!