The main principles of the Estonian tax system.

1. Estonian taxes and tax structure
Last updated September 2023
Tax and Customs Policy Department

2. Outline of presentation
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)
The main principles of the Estonian tax system, current tax structure

3. Estonian Tax System

4. Eesti
Vabariik
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.

5. Eesti
Vabariik
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.

6. Eesti
Vabariik
State taxes
• 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.
Local taxes
• 1) advertisement tax;
• 2) road and street closure
tax;
• 3) motor vehicle tax;
• 4) animal tax;
• 5) entertainment tax;
• 6) parking charge.

7. Taxation Act

8. Eesti
Vabariik
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
• administrative cooperation with partner jurisdictions

9. Eesti
Vabariik
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.

10. Eesti
Vabariik
Tax Authority
• 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.

11. Eesti
Vabariik
Main tax rates
• 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% and 5% (reduced rates)

12. Eesti
Vabariik
Structure of tax burden (% of GDP)
Source: Statistical Office of Estonia, Ministry of Finance
0%
5%
10%
15%
20%
25%
30%
35%
40%
`95 `97 `99 `01 `03 `05 `07 `09 `11 `13 `15 `17 `19 `21 `23 `25 `27
Direct taxes Indirect taxes Social security contributions

13. Eesti
Vabariik
Tax burden (% of GDP)
Source: Statistical Office of Estonia, Ministry of Finance
32.7%
29%
30%
31%
32%
33%
34%
35%
36%
`95 `97 `99 `01 `03 `05 `07 `09 `11 `13 `15 `17 `19 `21 `23 `25 `27

14. Eesti
Vabariik
Structure of tax revenues
Source: Statistical Office of Estonia, Ministry of Finance
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
`95 `97 `99 `01 `03 `05 `07 `09 `11 `13 `15 `17 `19 `21 `23 `25 `27
Personal income tax Corporate income tax Social contributions VAT Excise duties Land tax Other taxes

15. Eesti
Vabariik
Tax Revenue 2022
Personal income tax*
19.08%
Corporate income tax
4.99%
VAT
27.69%
Excise duties
8.33%
Heavy goods vehicle tax
0.04%
Customs duty
0.71%
Social tax
34.72%
Gambling tax
0.39%
Land tax*
0.49%
Unemployment insurance*
2.18%
Mandatory funded pension*
1.36%
Source: Ministry of Finance
Total tax revenue 11 948.5 million €
Transmittable taxes* 2 008.1 million €

16. Eesti
Vabariik
Tax Revenue 2022, million € (collected)
State taxes 11 948,5
Direct taxes 7 507,1
Personal income tax* 2 279,4
Corporate income tax 596,1
Social tax 4 149,1
Unemployment insurance payment** 261,0
Mandatory funded pension contribution** 162,4
Land tax** 59,0
Indirect taxes 4 441,4
VAT 3 308,8
Excise duties 995,7
Heavy goods vehicle tax 5,1
Customs duty 84,7
Gambling tax 47,1
Local taxes 18,8
* - The amount received by the state and local governments
**- transmittable taxes
Source: Ministry of Finance

17. Direct taxes

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

19. Eesti
Vabariik
Personal income tax
• 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.

20. Eesti
Vabariik
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%

21. Eesti
Vabariik
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 years 2018–2022 6 000 - 0 €
(regressive)
Income of the years 2023–… 7 848- 0 €
(regressive)

22. Eesti
Vabariik
Personal income tax
Deductions from taxable income
• As of 2023 basic exemption 7 848 € – 0 € per year.
• If taxable income does not exceed 14 400 €, basic exemption is 7 848 €.
• If taxable income per year is 14 400 € – 25 200 €, the following formula applies:
– 7 848 - 7 848/10 800 x (amount of income - 14 400)
• If taxable income per year exceeds 25 200 €, basic exemption is 0.

23. Eesti
Vabariik
Personal income tax
 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.
Deductions from taxable income

24. Eesti
Vabariik
Income tax reduction
26
24
23
22
21
20 20
19 32 51
64 89
109
128 144
154 170 180
500
654
0
100
200
300
400
500
600
700
18
20
22
24
26
28
`94 `96 `98 `00 `02 `04 `06 `08 `10 `12 `14 `16 `18 `20 `22 `24 `26
%
Income tax rate (left scale) Monthly basic exemption (€, right scale)
€

25. Eesti
Vabariik
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.

26. Eesti
Vabariik
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

27. 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
Personal income tax

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

29. Personal income tax revenue 1994-2027
Source: Statistical Office of Estonia, Ministry of Finance
0
500
1000
1500
2000
2500
3000
´94 ´96 ´98 ´00 ´02 ´04 ´06 ´08 ´10 ´12 ´14 ´16 ´18 ´20 ´22 ´24 ´26
Local government State
Million €

30. 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

31. 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)

32. 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

33. Corporate income tax

34. 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)

35. 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

36. 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.

37. 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.

38. 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

39. 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

40. 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

41. Corporate income tax revenue 1995-2027
Includes revenue under the prior Income Tax Act (taxable period 1999)
million €
0
100
200
300
400
500
600
700
800
900
´95 ´97 ´99 ´01 ´03 ´05 ´07 ´09 ´11 ´13 ´15 ´17 ´19 ´21 ´23 ´25 ´27
Million €

42. Structure of declared corporate income tax
2003-2027
Source: Statistical Office of Estonia, Ministry of Finance
0
100
200
300
400
500
600
700
800
900
`03 `05 `07 `09 `11 `13 `15 `17 `19 `21 `23 `25 `27
Distributed profit Fringe benefits
Advance CIT of credit institutions Charitable gifts and donations
Non-business expenses Payments to non-resident legal persons
Million €

43. Double tax treaties (DTT)
• Estonia has 62 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)

44. 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.

45. 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.

46. 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 %.

47. 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.

48. 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

49. 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.
Social tax

50. • Tax allocation IF the person has joined the II pension pillar (compulsory for the persons
who have born in 1983 or later unless the contributions have been suspended; voluntary for
older people)
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%
Social tax

51. Social tax revenue and structure
Source: Statistical Office of Estonia, Ministry of Finance
0
1000
2000
3000
4000
5000
6000
`94 `96 `98 `00 `02 `04 `06 `08 `10 `12 `14 `16 `18 `20 `22 `24 `26
Employers' payments to natural persons Fringe benefits
State (according to social tax law §6) Business income of sole proprietors
Social tax
Million €

52. 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.

53. Indirect taxes

54. Eesti
Vabariik
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

55. 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
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

56. Tax rates
Standard rate is 20%. (From 1 January 2024 the standard rate is 22%).
Reduced rates are:
9% (books, electronic books, medicines, medical devices intended for the
personal use of disabled persons, accommodation)
5% (newspapers, electronic newspapers)
Zero rated: export; intra-Community supply; services where the place of supply
is not Estonia; vessels and aircrafts used on international routes, including
equipment and fuel; goods and services for consumption supplied on board of
vessels and aircrafts.
VAT

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

58. VAT revenue 1994-2027 million €
Source: Statistical Office of Estonia, Ministry of Finance
0
1000
2000
3000
4000
5000
´94 ´96 ´98 ´00 ´02 ´04 ´06 ´08 ´10 ´12 ´14 ´16 ´18 ´20 ´22 ´24 ´26
Million €

59. 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

60. 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

61. Excise duty rates on tobacco
products
Product Excise duty
rates
2023
EU minimum
excise duty rates
CIGARETTES:
96,30 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)
160,50 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 ) 107,00 EUR 60 EUR or 48% from the retail selling
price

62. Excise duty rates on alternative tobacco products
Product Excise duty rates as
of 2023
Tobacco liquid (per millilitre)
0,2 EUR
Solid tobacco substitute (steam stones, nicotine
pouches), per kilogramm 107,00 EUR
Other alternative tobacco products (tobacco
product in the form of gel), per gram
0,2 EUR

63. Excise duty rates on motor fuels
Energy product Excise rates in Estonia
01.10.2023
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 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

64. 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 01.10.2023
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 - -

65. Excise duty rates on heating fuels and electricity
Energy product Excise rates in Estonia
01.10.2023
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

66. Excise duty revenue 1994-2027
0
200
400
600
800
1000
1200
1400
`94 `96 `98 `00 `02 `04 `06 `08 `10 `12 `14 `16 `18 `20 `22 `24 `26
Alcohol Tobacco Fuel Electricity
Million €
Source: Statistical Office of Estonia, Ministry of Finance

67. 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 €

68. 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.
Packaging excise duty

69. 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

70. 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

71. 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%

72. 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%
Gambling tax

73. 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.

74. Background information

75. GDP Growth 2012–2022
2.9
-2
0
2
4
6
8
10
IE MT PL RO LT HU EE LV LU CY BG SI HR SK SE DK CZ NL EU27 BE EA20 AT DE PT ES FR FI IT EL
Average economic growth 2012-2022
Economic growth 2022

76. Estonian real convergence with the EU
(% of EU27 average)
30
40
50
60
70
80
90
100
`00 `01 `02 `03 `04 `05 `06 `07 `08 `09 `10 `11 `12 `13 `14 `15 `16 `17 `18 `19 `20 `21 `22
GDP per capita PPS
Price level
Nominal labour productivity per hour worked

77. Growth expectations
* Harmonised Consumer Price Index (HICP)
GDP growth,
%
Consumer price
index, %
2023 2024 2023 2024
IMF -1.6 2.9 9.7* 3.7*
OECD -1.3 3.2 9.2* 3.4*
European Commission -0.4 3.1 9.2* 2.8*
Ministry of Finance
(summer 2023)
-2.0 2.7 9.6* 4.6*

78. General Government budgetary balance1995-2027
-4.4
-8
-7
-6
-5
-4
-3
-2
-1
0
1
2
3
4
`95 `96 `97 `98 `99 `00 `01 `02 `03 `04 `05 `06 `07 `08 `09 `10 `11 `12 `13 `14 `15 `16 `17 `18 `19 `20 `21 `22 `23 `24 `25 `26 `27
% of GDP
Central Government Local Government Social Security General Government
Source: Statistical Office of Estonia, Ministry of Finance

79. General Government tax burden 1995-2027
32.7
0
5
10
15
20
25
30
35
40
`95 `97 `99 `01 `03 `05 `07 `09 `11 `13 `15 `17 `19 `21 `23 `25 `27
Direct taxes Indirect taxes Social security contributions Tax burden
% of GDP
Source: Statistical Office of Estonia, Ministry of Finance

80. General Government debt in 2022
Source: Eurostat
%
of
GDP
18.5
84.0
0
20
40
60
80
100
120
140
160
180

81. Tax wedge, single person without children, earns
67% of workers average wage (% of labour cost)
32
34
36
38
40
42
44
46
`00`01`02`03`04`05`06`07`08`09`10`11`12`13`14`15`16`17`18`19`20`21`22`23`24`25`26`27
Estonia Latvia Lithuania Finland EU 27 (2020)
Source: European Commission http://europa.eu/economy_finance/db_indicators/tab/#,
Ministry of Finance