Estonian taxes and tax structure as of September 2020. A presentation by the Tax Policy Department of the Ministry of Finance of the Republic of Estonia

1. ESTONIAN TAXES AND TAX
STRUCTURE
Tax Policy Department
Last updated September, 2020

2. Outline of presentation
• The main principles of the Estonian tax system, current
tax structure
• Taxation Act
• Direct Taxes (personal income tax, corporate income tax,
special tax for micro entrepreneurs, social tax, land tax)
• Indirect taxes (VAT, excise duties, gambling tax, heavy
goods vehicle tax, customs duty)

3. Estonian Tax System
The main principles of Estonian tax policy:
• simple and stable tax system;
• broad tax base, low rates;
• optimal tax burden and structure;
• transparent system with as few exceptions and
differences as possible.

4. Estonian Tax System
To achieve sustainable, socially and regionally balanced
economic growth Estonian tax system consists of state taxes
provided and imposed by tax acts and local taxes imposed by
local government council in its administrative territory pursuant
to law.

5. 1) excise duties;
2) income taxes;
3) gambling tax;
4) value added tax;
5) land tax;
6) social tax;
7) customs duty;
8) heavy goods vehicle tax;
9) business income tax for
micro entrepreneurs.
State taxes Local taxes
1) advertisement tax;
2) road and street closure
tax;
3) motor vehicle tax;
4) animal tax;
5) entertainment tax;
6) parking charge.

6. Taxation Act
Taxation act specifies
• Estonian tax system
• main definitions used in all tax acts
• requirements for tax acts
• rights, duties and liability of taxpayers, withholding
agents, guarantors and tax authorities
• regulations of the tax procedure and procedure for
resolution of tax disputes
• interest rate for late payment 0,06% per day, reduced to
0,03% per day until the end of 2021
• administrative cooperation with partner jurisdictions

7. Taxation Act
“Tax” is
• a single or periodical financial obligation
• imposed by an Act or by a local government council
regulation according to Local Taxes Act
• for the performance of the public law functions or to obtain
revenue to perform these functions
• subject to performance pursuant to the procedure, in the
amount and on the due dates prescribed by an Act
• collected without direct compensation therefore.

8. • The tax authority for state taxes is the Tax and Customs
Board with its regional offices. The tax authority operates
within the area of government of the Ministry of Finance.
• Tax authority verifies the correctness of tax payments,
assesses amounts of tax and interest due in the cases
provided by law, collects tax arrears and implements
sanctions against persons who violate tax Acts.
• Tax authority is also the competent authority for
administrative cooperation purposes.
Tax Authority

9. • Corporate income tax
• 20% on distributed profit
• 14% on regularly distributed profit
• Personal income tax – 20%
• Social tax – 33% (payable only by employer)
• Unemployment insurance payment – 1,6% payable by
employee and 0,8% payable by employer
• Contribution to the mandatory funded pension system
- 2% (payable by employee)
• Value added tax - 20% (standard rate), 9% (reduced
rate)
Main tax rates

10. Structure of tax burden (% of GDP)
Source: Statistical Office of Estonia, Ministry of Finance
0%
5%
10%
15%
20%
25%
30%
35%
40%
2000 2003 2006 2009 2012 2015 2018 2021 2024
Direct taxes Indirect taxes Social security contributions

11. Tax burden (% of GDP)
Source: Statistical Office of Estonia, Ministry of Finance
31.5%
29%
30%
31%
32%
33%
34%
35%
36%
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023

12. Structure of tax revenue
Source: Statistical Office of Estonia, Ministry of Finance
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024
Personal income tax Corporate income tax Social contributions
VAT Excise duties Land tax
Other taxes

13. Tax Revenue 2019
Total tax revenue 9 523.5 million €
Transmittable taxes* 1 651.9 million €
Source: Ministry of Finance
Personal income
tax*
16%
Corporate
income tax
5%
VAT
26%
Excise duties
12%
Heavy goods
vehicle tax
0%
Customs duty
1%
Social tax
35%
Gambling tax
0%
Land tax*
1%
Unemployment
insurance*…
Mandatory funded pension*
2%

14. Tax Revenue 2019, million € (collected)
* - The amount received by the state + local governments
**- transmittable taxes
Source: Ministry of Finance
State taxes 9 523,5
Direct taxes 5 825,5
Personal income tax* 1 531,6
Corporate income tax 509,1
Social tax 3 348,3
Unemployment insurance payment** 207,5
Mandatory funded pension contribution** 169,9
Land tax** 59,1
Indirect taxes 3 698,1
VAT 2 482,6
Excise duties 1 128,4
Heavy goods vehicle tax 5,2
Customs duty 52,1
Gambling tax 29,8
Local taxes 16,8

15. • Income tax (personal and corporate income tax both
stipulated in the Income Tax Act)
• Business income tax for micro entrepreneurs
• Social tax
• Land tax
Direct taxes

16. • Residents pay tax on their total worldwide income.
• Non-residents pay tax only on their income received
from Estonian sources.
• Individuals are Estonian residents if they:
- have a permanent home in Estonia, or
- stay in Estonia 183 days or more during any 12-
month period.
Personal income tax

17. Personal income tax
Period of taxation: a calendar year
Tax rate: 20% (10% for certain pensions and payments to non-
residents and 7% for dividends from Estonian companies if
profit distributions were subject to 14% tax rate)
Decrease of the income tax rate (both for individuals and
legal persons):
Until the year 2004 – 26%
Income of the year 2005 – 24%
Income of the year 2006 – 23%
Income of the year 2007 – 22%
Income of the years 2008-2014 – 21%
Since income of the year 2015 – 20%

18. Personal income tax
Increase of basic exemption (per year):
Income of the year 2003 – 12 000 EEK (767 €)
Income of the year 2004 – 16 800 EEK (1074 €)
Income of the year 2005 – 20 400 EEK (1304 €)
Income of the years 2006- 2007 – 24 000 EEK (1534 €)
Income of the years 2008- 2010 – 27 000 EEK (1726 €)
Income of the years 2011- 2014 – 1 728 €
Income of the year 2015 – 1 848 €
Income of the year 2016 – 2 040 €
Income of the year 2017 – 2 160 € (2 832 €*)
Income of the year 2018 – … 6 000- 0 € (regressive)

19. Deductions from taxable income
• As of 2018 basic exemption 6000€ - 0€ per year.
• If taxable income does not exceed 14 400€, basic
exemption is 6000€.
• If taxable income per year is 14 400€ - 25 200€, the
following formula applies:
6000-6000/10800x(amount of income – 14 400)
• If taxable income per year exceeds 25 200€, basic
exemption is 0.
Personal income tax

20. Personal income tax
Deductions from taxable income
- Additional deductions for
children starting from the
second child 1848€ per year per
child, from third child
- 3048€
- Mortgage interest – 300€ per
year
- Training expenses
- Gifts and donations
Deductions
combined cannot
exceed 50% of
taxable income or
1200€ per year
- Payments for supplementary pension – 15% of income, but not more
than 6000€ per year
- Compulsory social insurance benefits
The same deductions are available to an EU resident from income taxable
in Estonia in proportion to its share in the overall taxable income for the
period of taxation.

21. 26
24
23
22
21
20
19
32 51
64 89
109
128 144
154 170 180
500
0
100
200
300
400
500
600
18
20
22
24
26
28
1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022
%
Income tax rate (left scale) Monthly basic exemption (€, right scale)
€
Income tax reduction

22. Personal income tax
For non-residents there is a limited list of taxable income in the
Income Tax Act:
• income from work under a labour contract or contractor's
agreement in Estonia;
• directors' fees;
• income from a business carried on in Estonia;
• gains from disposal of registered assets located in Estonia;
• income from the lease of assets located in Estonia;
• dividend paid to non-resident individual if the profit distribution was
taxed at a 14% corporate income tax rate;
• royalties;
• interest received from the holding in a contractual investment fund,
whose property was made up more than 50 per cent of immovables
in Estonia (in certain conditions);
• income of a sportsman or an artist from his activities in Estonia
• pensions and scholarships.

23. Personal income tax
For non-resident individuals
• Period of taxation is a calendar year
• Tax rates:
• 20% and 10%;
• 7% in case of dividend paid to non-resident
individual if the profit distribution was taxed at a
14% corporate income tax rate

24. Personal income tax
Tax allocation of personal income tax paid by
residents
• The amount received by local governments is
11.96% of taxable income (deductions are not taken
into account), the excess amount is received by the
state
• Income tax paid on pensions and capital gain is
received by the state
Non-residents:
• Income tax is received by the state

25. Personal income tax
Avoidance of double taxation
Individuals
Exemption method for foreign dividends and certain salary
income
Credit method for all other types of foreign income

26. Personal income tax revenue
1994-2024 million €
Source: Statistical Office of Estonia, Ministry of Finance
0
500
1000
1500
2000
2500
1994 1997 2000 2003 2006 2009 2012 2015 2018 2021 2024
Local government State
Million €

27. Corporate income tax
• Corporate tax reform in year 2000
The moment of taxation of corporate income is
postponed until the distribution of the profits
The system applies to:
• Estonian resident companies
- legal persons that are established pursuant to
Estonian law
• permanent establishments (PE) of non-resident
companies
- PE is an entity through which the business of a non-
resident is carried out in Estonia

28. Corporate income tax
Tax base
• corporate profits distributed in the tax period; dividends
and other profit distributions, incl. liquidation proceeds
and payments made on reduction of company’s equity or
redemption or return of shares
• taxable gifts, donations and representation expenses;
• expenses and payments unrelated to business;
• hidden profit distributions.
Fringe benefits are taxable at the level of employer.
Losses – taken into account (the Estonian Commercial Code
does not allow to distribute profits if the company has losses
from previous years)

29. Corporate income tax
Tax rate
• 20% (20/80 of the net amount of the dividend or other profit
distribution)
• 14% on regularly distributed dividends (14/86 of the net
amount of the regularly distributed dividends)
Period of taxation
• calendar month
• financial year in case of exceeding borrowing costs
• CFC’s financial year in case of taxation of CFC profits

30. Corporate income tax
+ qualified
dividend
received
100 EUR
+ foreign
interest
received
100 EUR
(source state
WHT 10)
Donations
200 EUR
Expenses
unrelated to
business
300 EUR
Gifts
100 EUR
1400EURpotentiallytaxableincome
Taxliabilitydeferred
Profit earned
in 2019
200 EUR +
Profit earned
in 2020
1000 EUR
Dividend /
liquidation
640 EUR
Exemption
method
Taxable amount
640 – 100 = 540
CIT (20/80) 25
CIT (20/80) 75
CIT (20/80) 50
CIT (20/80) 135
Credit
method
135 – 10 = 125
Total CIT
liability 275
Time

31. Corporate income tax
Methods introduced in the Estonian Income Tax Act, the goal
of which is to minimize the possibilities for tax fraud and
evasion
• CFC (Controlled Foreign Corporation) rules: residents
have to declare and pay tax on the income of off-shore
companies under their control
• Stricter regulations for minimising the use of transfer-
pricing schemes
• Withholding tax of 20% on all payments to so-called off-
shore companies for services
• Principal purpose test and reverse ’no deduction
without inclusion’ (as of 01.11.2016)

32. Corporate income tax
As of 1 January 2019 new anti-avoidance measures
transposed from ATAD directive entered into force:
• General Anti-Avoidance Rule
• Taxation of exceeding borrowing costs;
• New CFC rules;
• Obligation of permanent establishments to declare the value
of assets brought to Estonia

33. Corporate income tax
• General Anti-Avoidance Rule is merged with MLI anti-abuse
provision and applies both to companies and individuals;
• no account shall be taken of a transaction or chain of
transactions the principal purpose of which or one of the
principal purposes is to obtain a tax advantage which is
contrary to the content or purpose of the applicable tax law
or international agreement and which is not genuine;
• a transaction or chain of transactions shall not be
considered genuine unless it is made for real vital or
commercial reasons, which reflect the actual economic
substance of the transaction.

34. Corporate Income Tax
CIT is levied on exceeding borrowing costs which exceed
• EUR 3 000 000;
• 30% of the taxpayer’s EBITDA and
• the losses of the taxpayer
No CIT liability on exceeding borrowing costs in case of
• a standalone entity;
• financial undertakings;
• loans used to fund a long-term public infrastructure project
where the project operator, borrowing costs, assets and
income are all in the EU.

35. Interest Limitation Rule
Does the exceeding
borrowing cost exceed
EUR 3 000 000?
No
CIT
No
Does the exceeding
borrowing cost
exceed 30% of
EBITDA?
Yes
No
CIT
No
Is company in profit or
loss?
Yes
CIT on exceeding
borrowing costs which
exceed EUR 3 000
000 and 30% of
EBITDA
Profit
Is the amount of ecxeeding
borrowing costs which exceeds
EUR 3 000 000 and 30% of
EBITDA higher than losses?
CIT on exceeding
borrowing costs which
exceed EUR 3 000
000, 30% of EBITDA
and the losses
Yes
No
CIT
No

36. Corporate income tax
• CIT is levied on the non-distributed income of CFC arising
from non-genuine arrangements which have been put in
place for the essential purpose of obtaining a tax advantage
(irrespective of the tax rate)
• Exception: accounting profits of no more than EUR 750 000,
and non-trading income of no more than EUR 75 000

37. Corporate income tax
Avoidance of double taxation
Companies and non-resident’s PEs
Exemption method for qualified (threshold 10%) profit
distributions
the income tax will not be charged on dividends or on
payments upon reduction of share capital or contributions,
redemption of shares or liquidation of a legal person on
certain conditions.
Credit method for all other types of foreign income

38. Corporate income tax revenue
1995-2024
Includes revenue under the prior Income Tax Act (taxable period 1999)
million €
0
100
200
300
400
500
600
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023
Million €

39. Structure of declared corporate
income tax 2003-2024
Source: Statistical Office of Estonia, Ministry of Finance
-100
0
100
200
300
400
500
600
2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023
Distributed profit Fringe benefits
Advance CIT of credit institutions Charitable gifts and donations
Non-business expenses Payments to non-resident legal persons
Million €

40. Double tax treaties (DTT)
• Estonia has 61 treaties for the avoidance of double taxation
(income and capital taxes) in force
• Estonia has concluded DTTs with all EU Member States and
with most of OECD Member States (except for Australia,
Chile and New Zealand)

41. Business income tax for micro
entrepreneurs
• Simplified tax regime for micro entrepreneurs (individuals)
using special enterprise account in the bank was introduced
in 2018
Tax Base
• Gross income from selling goods and providing services
Tax rate
• 20% if income does not exceed 25 000 EUR per year
• 40% if income per year is over 25 000 EUR
The bank automatically transfers 20 % of the received income
to the Tax and Customs Board to cover income tax, social tax
and mandatory funded pension contributions.

42. Tax incentives for cargo ships
Tax incentives can be applied to the
following vessels:
• ships of at least 500 GT;
• ships used for international carriage of
goods or passengers by sea;
• ships flying a flag of the European
Economic Area.

43. Tax incentives for cargo ships
Tonnage tax. The company’s tax liability is
calculated on the basis of the net tonnage
of the vessel.
Labour tax incentives for crew members
• Labour taxes are calculated on the basis
of a 750 euro tax base. Social tax is 20%
and personal income tax is 0 %.

44. Reimbursement of taxes on labour
for passenger shipping companies
• Reimbursement is calculated based on
the difference between labour taxes
calculated from paid wages and labour
taxes calculated from the tax base (either
1.5 or 2.5 times the value of minimum
monthly wage).
• The reimbursement is paid quarterly.

45. Social tax
Tax Base
• Employers' payments to individuals (wage income) – tax
payable by employers
• in cash
• in kind (fringe benefits)
• Business income of self- employed– tax payable by self-
employed persons

46. Social tax
Tax rate
• Tax rate is 33 % of the taxable amount
Period of taxation
• Calendar month for wage income
• Calendar year for business income of self-employed
Social tax payable is personificated and will be taken into
account in making pension payments or health insurance
benefits.

47. • Tax allocation IF the person has joined the II pension pillar
(compulsory for the persons who have born in 1983 or later;
voluntary for older people)
Social tax
Social tax, rate 33% (payable
by employer or self employed
person)
State health
insurance
system
13% 16%
State pension
insurance system
(I pillar)
Personal pension account
of the person (II pillar) 2%
+ 4%= 6%
4%
Contribution to the II
pillar (made by
employee)
2%

48. Social tax revenue and structure
Source: Statistical Office of Estonia, Ministry of Finance
0
500
1000
1500
2000
2500
3000
3500
4000
1994 1997 2000 2003 2006 2009 2012 2015 2018 2021 2024
Employers' payments to natural persons Fringe benefits
State (according to social tax law §6) Business income of sole proprietors
Social tax
Million €

49. Land tax
Tax base
• Land tax is paid on all land based on the taxable value of land. The
residential land is exempt from tax to the extent of 0.15 hectares in
a densely populated area and to the extent of 2.0 hectares
elsewhere.
Taxable person
• Tax is paid by land owners and in some cases by the land users
Tax rate
• Land tax rate is established by the local government and it ranges
from 0.1- 2.5% of the taxable value of land.
• Land tax rate for areas under cultivation and for natural grasslands
ranges from 0.1-2.0% of the taxable value of the land annually.

50. Indirect taxes
• Value added tax
• Alcohol excise duty
• Tobacco excise duty
• Energy products excise duty
• Packaging excise duty (budget revenues insignificant)
• Heavy goods vehicle tax
• Gambling tax
• Customs duty

51. Taxable person
• Person whose taxable supply exceeds 40 000 EUR in
a calendar year (as of 2018)
• Voluntary compliance possible for anyone, who carries
out economic activity in Estonia
VAT

52. Tax base
VAT is charged on:
• transactions of goods and services within Estonia
• intra-Community acquisitions of goods and services
• importation of goods and services
• provision of services which are taxable in Estonia,
supplied by the foreign taxable person
VAT

53. Tax rates
Standard rate is 20%.
Reduced rate is 9% (books, electronic books, newspapers,
electronic newspapers, medicines, accommodation).
Zero rated: export; intra-Community supply; vessels and
aircrafts used on international routes, including
equipment and fuel; goods and services for consumption
supplied on board of vessels and aircrafts.
VAT

54. Exempted goods and services are:
• postal services
• health services
• social services
• insurance services
• financial services
• services for the protection of children
• transportation of sick, injured or disabled persons
• supply of immovables
• the leasing and letting of immovables, etc.
VAT

55. VAT revenue 1994-2024
million €
Source: Statistical Office of Estonia, Ministry of Finance
0
500
1000
1500
2000
2500
3000
3500
1994 1997 2000 2003 2006 2009 2012 2015 2018 2021 2024
Million €

56. Excise duties
Excise duties are levied on:
• Alcohol
• Tobacco
• Fuel
• Electricity
• Packaging
Duty rates on alcohol, tobacco and energy
products meet the EU minimum levels

57. Excise duty rates on alcohol
Unit
Excise duty rates
since 01.07.2019
EU
minimum
excise duty
rates
Wine and
fermented
beverage
Hectolitre
(up to 6 %): 63,35 EUR
(> 6 %): 147,82 EUR
0
Beer
1 % alcohol in
hectolitre
12,70 EUR
(yearly production up to
6000 hl): 8,46 EUR
1,87 EUR
Intermediate
product Hectolitre 289,33 EUR 45 EUR
Other alcohol
Hectolitre of
pure alcohol 1881 EUR 550 EUR

58. Excise duty rates on tobacco products
Product Excise duty
rates
2020
EU minimum
excise duty rates
CIGARETTES:
81,95 EUR 90 EUR per 1000 cigarettes, but
not less than
60% from weighted average price
of cigarettes
Specific rate (1000 cigarettes)
Ad valorem rate
(% of the retail selling price) 30 %
Minimal amount of excise to
pay (1000 cigarettes)
138,65 EUR Unlimited
CIGARS, CIGARILLOS
(1000 cigars or cigarillos)
151 EUR +
10% of the
retail selling
price, but not
less than 211
EUR
12 EUR or 5% from the retail
selling price
SMOKING TOBACCO
(1 kg ) 89,63 EUR 60 EUR or 48% from the retail
selling price

59. Excise duty rates on alternatiive
tobacco products
Product Excise duty rates
2020
Tobacco liquid (per millilitre)
0,2 EUR
Solid tobacco substitute (steam
stones), per kilogramm 89,63 EUR
Other alternative tobacco
products (tobacco product in the
form of gel), per gram
0,2 EUR

60. Excise duty rates on motor fuels
Energy product Excise rates in Estonia
01.05.2020
EU minimum
excise duty rate
Unleaded petrol 563 EUR/ 1000 l 359 EUR/ 1000 l
Leaded petrol 563 EUR/ 1000 l 421 EUR/ 1000 l
Gas oil (diesel) 372 EUR/ 1000 l 330 EUR/ 1000 l
Gas oil for specific
purposes
100 EUR/ 1000 l 21 EUR/ 1000 l
Natural gas for
vehicles
40 EUR/ 1000 m3 2,6 EUR/ GJ
LPG 193 EUR/ 1000 kg 125 EUR/ 1000 kg
Petroleum 330,10 EUR/ 1000 l 330 EUR/ 1000 l

61. Excise duty rates on heating fuels
and electricity
* Density at 15oC is less than 900 kg/m3, viscosity at 40oC is less than 5mm2/s and the sulfur content is less than 0,5 wt%
** Density at 15oC is less than 900 kg/m3, viscosity at 40oC is less than 5mm2/s and the sulfur content is less than 0,5 wt%
Energy product Excise rates in
Estonia 01.05.2020
EU minimum excise duty rate
business non-business
Light fuel oil 372 EUR/ 1000 l 21 EUR/
1000 l
21 EUR/ 1000 l
Heavy fuel oil 58 EUR/ 1000 kg 15 EUR/
1000 kg
15 EUR/ 1000
kg
Heavy fuel oil* 422 EUR/ 1000 kg 15 EUR/
1000 kg
15 EUR/ 1000
kg
Shale oil 57 EUR/ 1000 kg - -
Shale oil** 414 EUR/ 1000 kg - -

62. Excise duty rates on heating fuels
and electricity
Energy
product
Excise rates in
Estonia 01.05.2020
EU minimum excise
duty rate
business non-
business
Petroleum 330,10 EUR/ 1000 l - -
LPG 55 EUR/ 1000 kg - -
Natural gas 40 EUR/ 1000 m3 0,15 EUR/
GJ
0,3 EUR/
GJ
Coal, coke and
oil shale
0,93 EUR/ GJ 0,15 EUR/
GJ
0,3 EUR/
GJ
Electricity 1 EUR/ MWh 0,5 EUR/
MWh
1 EUR/
MWh

63. Excise duty revenue 1994-2024
0
200
400
600
800
1000
1200
1994 1997 2000 2003 2006 2009 2012 2015 2018 2021 2024
Alcohol Tobacco Fuel
Source: Statistical Office of Estonia, Ministry of Finance

64. Packaging excise duty
Object of taxation:
Excise duty on packaging is imposed on packaging launched to
the market of Estonia, acquired from another EU Member State
or imported into Estonia.
Excise is paid by the importer of packages, by the user of packages
or by the person acquiring packaging
Object of packaging
excise duty
Excise duty rate in EUR
per kilogram
Glass and ceramics 0.6 €
Plastic 2.5 €
Metal 2.5 €
Paper 1,2 €
Other 1.2 €

65. Packaging excise duty
Excise is not charged:
• on alcohol or nonalcoholic beverages packaging with
deposit imposed on the packaging under packaging law,
of which at least 85 per cent is recovered;
• on beverage packaging from metal of which at least 50
per cent is recovered;
• on other packaging which is recovered according to the
rates of package law § 36.

66. Heavy Goods Vehicle Tax
Mandatory tax imposed by EU law.
Object of Heavy Goods Vehicle Tax
Trucks or road trains intended for the carriage of goods
with a gross laden weight of not less than 12 tonnes which
are registered in the traffic register.
Tax rate of Heavy Goods Vehicle Tax
Minimum rates stipulated in the Directive 1999/62/EC are in
effect

67. Gambling Tax
Gambling tax is paid by gambling operators.
Period of taxation
• calendar month or
• the period during which the commercial lottery or a
tournament of a game of chance is organised

68. Gambling tax
Object of gambling tax Tax rate
Gambling tables for games of chance, (except
tables used for tournaments) and gambling
machines for games of skill
1278.23 euros per
gambling table
31.95 euros per gambling
machine
Gambling machines for games of chance and
the total amount of bets, less the winnings
300 euros per gambling
machine and 10 per cent
of the total bets made,
less the winnings
Lottery, the total amount received from the sale
of lottery tickets
18%
Commercial lottery, the winning pot whose
value exceeds 10 000 euros
18%
Totaliser, the total amount of bets, less the
winnings
5%

69. Gambling tax
Object of gambling tax Tax rate
Online game of chance or online game of
skill, the total amount of bets, less the winnings
5%
Tournament of a game of chance (Gambling
Act § 7 (1) 1)), the total amount of participation
fees, less the portion accruing to the prize pool;
5%
Tournament of a game of chance (Gambling
Act § 7 (1) 1) by way of remote gambling, the
total amount of participation fees, less the portion
accruing to the prize pool
5%
Tournament of a game of chance (Gambling
Act § 7 (1) 2)), the total amount of participation
fees;
5%
Tournament of a game of chance (Gambling
Act § 7 (1) 2)) by way of remote gambling, the
total amount of participation fees.
5%

70. Customs duty
Tax base
• Common customs tariff duties are generally applicable to all
goods imported into the EU
Tax rate
• The customs duty rates (ad valorem and specific duty rates)
are based on customs value and are dependent on the type of
goods and the country of origin
• All EU Member States use online customs tariff database
TARIC (integrates all measures relating to tariffs, commercial
and agricultural legislation)
• Information relating to national levies (rates of VAT and
excises) can be obtained from Estonian Master Tariff System.

71. Background information

72. GDP Growth 2010–2019
2.5
-4
-2
0
2
4
6
8
IE MT EE PL LT RO LU SK HU LV SE CZ BG DE DK SI EU28 AT BE NL FR EA19 CY FI ES HR PT IT EL
Average economic growth 2010-2019
Economic growth 2019

73. Estonian real convergence with the EU
(% of EU28 average)
83.0
30
40
50
60
70
80
90
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
GDP per capita PPS
Price level
Nominal labour productivity per hour worked

74. Growth expectations
GDP growth,
%
Consumer price
index, %
2020 2021 2020 2021
IMF -7.5 7.9 1.5* 2.0*
OECD -8.4 4.3 0.1* 1.3*
European Commission -7.7 6.2 0.3* 1.9*
Ministry of Finance
(Summer 2020)
-5.5 4.5 -0.4* 1.4*
* Harmonised Consumer Price Index (HICP)

75. General Government budgetary balance
2005-2024
1.1
2.9 2.7
-2.6
-2.2
0.2
1.1
-0.3
0.2 0.7
0.1
-0.5 -0.8 -0.6 -0.3
-6.6
-6.0
-5.4
-8
-6
-4
-2
0
2
4
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
% of GDP
Central Government Local Government Social Security General Government
Source: Statistical Office of Estonia, Ministry of Finance

76. General Government tax burden
1995-2024
31.5
0
5
10
15
20
25
30
35
40
1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023
Direct taxes Indirect taxes Social security contributions Tax burden
% of GDP
Source: Statistical Office of Estonia, Ministry of Finance

77. General Government debt in 2019
Source: Ministry of Finance, Eurostat
8.4
79.3
0
30
60
90
120
150
180
EE BG LU CZ DK SE RO LT LV MT PL SK NL IE FI DE SI HU AT HR EU UK CY ES FR BE PT IT EL
%ofGDP

78. Tax wedge, single person without children,
earns 67% of workers average wage (% of
labour cost)
32
34
36
38
40
42
44
46
2005 2007 2009 2011 2013 2015 2017 2019 2021 2023
Estonia Latvia Lithuania Finland EU 28
Source: European Commission http://europa.eu/economy_finance/db_indicators/tab/#,
Ministry of Finance