If you operate in Estonia on a permanent basis and are a tax resident there, and if you pay yourself a salary, it’s classified as a board member's remuneration, and the following taxes are declared and paid in Estonia, according to Estonian rules and regulations:
- personal income tax 20% (22% from Jan 1, 2025),
- local pension insurance 2%, mandatory for persons born in 1983 and later,
- Social tax 33%
The final tax burden depends on the amount of your salary. You can use a standard calculator (tick “Funded pension”, if you were born in 1983 or later) to measure the total tax amount your company has to cover, depending on the actual salary payments.
The taxes are paid by the company (incl. the withholding taxes which are paid on your behalf). Xolo handles all the tax reporting and assists with tax payments in Estonia. The taxes are paid in the month after the salary payment occurred. And please note that there is monthly tax reporting in Estonia (not semi-annual nor annual, in contrast to some other countries).