The list of territories which are not regarded as low tax rate territories, is established with a regulation of the Minister of Finance.
In alphabetical order
- Canada
- Czech Republic
- Federal Republic of Germany
- French Republic
- Georgia
- Grand Duchy of Luxembourg
- Hellenic Republic (Greece)
- Hungary
- India
- Ireland
- Isle of Man
- Italian Republic
- Japan
- Jersey
- Kingdom of Bahrain
- Kingdom of Belgium
- Kingdom of Denmark
- Kingdom of Norway
- Kingdom of Spain
- Kingdom of Sweden
- Kingdom of Thailand
- Kingdom of the Netherlands, except Aruba, Sint Maarten and Curaçao
- People’s Republic of China, except Hong Kong, Aomen (Macao)
- Portuguese Republic
- Republic of Albania
- Republic of Armenia
- Republic of Austria
- Republic of Azerbaijan
- Republic of Belarus
- Republic of Bulgaria
- Republic of Croatia
- Republic of Cyprus
- Republic of Finland
- Republic of Iceland
- Republic of Kazakhstan
- Republic of Korea
- Republic of Latvia
- Republic of Lithuania
- Republic of Malta
- Republic of Moldova
- Republic of North Macedonia
- Republic of Poland
- Republic of Serbia
- Republic of Singapore
- Republic of Slovenia
- Republic of Turkey
- Republic of Uzbekistan
- Romania
- Slovak Republic
- Socialist Republic of Vietnam
- State of Israel
- Swiss Confederation
- Turkmenistan
- Ukraine
- United Arab Emirates
- United Kingdom of Great Britain and Ireland, except Anguilla, Bermuda, British Virgin Islands, Cayman Islands, Gibraltar, Guernsey, Montserrat, Turks and Caicos Islands
- United Mexican States
- United States of America, except United States Virgin Islands and Marshall Islands
About low tax rate territories
Estonia does not have an official list of countries that are regarded as low tax rate territories.
A legal person, which generates more than 50% of its annual revenue from actual economic activities, or whose country or territory of location provides tax authorities with information concerning the income of a person under the control of residents of Estonia, is not considered to be located in a low tax rate territory.
Legal persons whose transactions are not ostensible are deemed to be engaged in genuine economic activity. The characteristics of an ostensible transaction are: an incorrect legal form and intent to evade taxes, the lack of economic purpose, and the artificial nature of the transactions.
If the aforementioned conditions are not fulfilled, the taxpayer has to be able to prove that the trading partner is not located in a low tax rate territory, for example, with a certificate of income tax liability of the legal person in that foreign country certified by a tax authority of the country.
The taxpayer is obligated to prove that the transactions have been carried out in good faith and for business purposes.