If the non-resident is not registered in the Estonian commercial register, the non-resident must register with the Tax and Customs Board as a non-resident employer before commencing activities in Estonia.
If the non-resident is an employer in Estonia, the non-resident must:
- enter his or her employees in the employment register.
- withhold income tax, employee unemployment insurance premiums and mandatory funded pension contributions from wages paid to employees.
- calculate social tax and employer’s unemployment insurance premium on wages paid to employees.
- calculate fringe benefits granted to an employee and the income tax and social tax thereon.
- transfer the taxes and payments due to the bank account of the Estonian Tax and Customs Board no later than by the 10th day of the month following the month in which the payment was made or the fringe benefit was granted. Indicate a personal reference number on the payment order. More information: "Payment of taxes".
- submit to the Tax and Customs Board, by the 10th day of the month following the month in which a payment is made, declaration TSD and Annex 1 to the TSD (if the employees are residents in Estonia) or the declaration TSD and Annex 2 to the TSD (if the employees are non-residents). Declaration TSD and Annex 4 to the TSD concerning fringe benefits taxable in Estonia must be submitted by the 10th day of the month following the month in which the benefits were granted, irrespective of the residency of the employee. Declarations can be submitted in the online services environment e-MTA or on paper form at a service bureau of the Tax and Customs Board.
The most convenient way to declare tax liabilities is to use the online services environment of the Tax and Customs Board e-MTA, for which it is necessary to apply for access permissions.
Last updated: 22.06.2022