Taxation in Estonia

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Many cars in Estonia are decorated with Estonian and Latvian flags. Though at first glance a gesture of neighborly respect, it is actually a protest against the tax policy of the Estonian government. Some of Latvia’s neighbors up north are so fed up with their government that they’re planning to spend August 20 – the […]

Although the European Commission recently said regarding its income tax system that Estonia could become a country of tax avoidance, according to the Estonian Employers’ Confederation (ETK), Estonia is a country with good tax discipline, which is usually not considered a country known for its possibilities for optimizing taxes.

Estonia’s tax burden is significantly lower than the European Union average and the tax changes enacted by the government of late reduce the taxation of labor and increase the taxation of consumption, the European Commission says in its Country Report Estonia 2018.

The Estonian Ministry of Foreign Affairs is to deliver a diplomatic note to Ukraine with additional information about Estonia’s tax system and a call for the Ukrainian government to remove Estonia from its list of countries with a low tax rate, or so-called tax havens, Minister of Foreign Affairs Sven Mikser said on Tuesday.

The head of the Association of Estonian International Road Carriers, Einar Vallbaum, finds that not offering truck drivers the possibility to pay the road tax at filling stations is a major fault of the system. A switch effective Jan. 1 this year got rid of this previously available option.

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