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Employers registered in Estonia (including permanent establishments of the foreign entities) must pay social tax on all payments made to employees, except on those specifically exempted by law. In case of an individual engaged in business and registered as such with the Tax Authorities, social tax liability lies with the individual. Fringe benefits and the income tax thereof are also included in the taxable base. Currently only employers and individuals engaged in business are liable to make social tax contributions. Employees are not required to pay social tax.
The rate of social tax is 33% (20% for social security and 13% for health insurance).
Additional information
Estonian Tax and Customs Board: http://www.emta.ee
Ministry of Finance: http://www.fin.ee/tax-policy
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