Ce diaporama a bien été signalé.
Nous utilisons votre profil LinkedIn et vos données d’activité pour vous proposer des publicités personnalisées et pertinentes. Vous pouvez changer vos préférences de publicités à tout moment.

Estonian taxes and tax structure (as of 1 january 2019)

449 vues

Publié le

Estonian taxes and tax structure (as of 1 january 2019)

Publié dans : Économie & finance
  • DOWNLOAD FULL BOOKS INTO AVAILABLE FORMAT ......................................................................................................................... ......................................................................................................................... 1.DOWNLOAD FULL PDF EBOOK here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL EPUB Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL doc Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL PDF EBOOK here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL EPUB Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL doc Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
       Répondre 
    Voulez-vous vraiment ?  Oui  Non
    Votre message apparaîtra ici
  • Soyez le premier à aimer ceci

Estonian taxes and tax structure (as of 1 january 2019)

  1. 1. ESTONIAN TAXES AND TAX STRUCTURE Tax Policy Department As of January 1, 2019
  2. 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. 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. 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. 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. 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 • administrative cooperation with partner jurisdictions
  7. 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. 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. 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. 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 Direct taxes Indirect taxes Social security contributions
  11. 11. Tax burden (% of GDP) Source: Statistical Office of Estonia, Ministry of Finance 33.3% 29% 30% 31% 32% 33% 34% 35% 36% 37% 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021
  12. 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 Personal income tax Corporate income tax Social contributions VAT Excise duties Land tax Other taxes
  13. 13. Tax Revenue 2017 Total tax revenue 8 087.9 million € Transmittable taxes* 1 363.8 million € Source: Ministry of Finance Personal income tax* 17% Corporate income tax 5% VAT 27% Excise duties 12% Heavy goods vehicle tax 0% Customs duty 0% Social tax 34% Gambling tax 0% Land tax* 1% Unemployment insurance*… Mandatory funded pension* 2%
  14. 14. Tax Revenue 2017, million € (collected) * - The amount received by the state + local governments **- transmittable taxes Source: Ministry of Finance State taxes 8 087,9 Direct taxes 4 879,4 Personal income tax* 1 344,4 Corporate income tax 365,5 Social tax 2 789,1 Unemployment insurance payment** 171,6 Mandatory funded pension contribution** 151,1 Land tax** 57,5 Indirect taxes 3 208,5 VAT 2 148,3 Excise duties 989,9 Heavy goods vehicle tax 5,4 Customs duty 38,1 Gambling tax 26,9 Local taxes 15,8
  15. 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. 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. 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. 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. 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. 20. Personal income tax Deductions from taxable income - Additional deductions for children starting from the second child 1848€ per year per child - Mortgage interest – 300€ per year - Training expenses - Gifts and donations (mortgage interest, training expenses, gifts and donations together 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. 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. 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. 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. 24. Personal income tax Tax allocation of personal income tax paid by residents • The amount received by local governments is 11.93% 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. 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. 26. Personal income tax revenue 1994-2022 million € Source: Statistical Office of Estonia, Ministry of Finance 0 200 400 600 800 1000 1200 1400 1600 1800 2000 1994 1997 2000 2003 2006 2009 2012 2015 2018 2021 Local government State Million €
  27. 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. 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. 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. 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 2010 200 EUR + Profit earned in 2011 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. 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. 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. 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. 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. 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 Kas äriühingul on kasum või kahjum? 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. 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. 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. 38. Corporate income tax revenue 1995-2022 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 Million €
  39. 39. Structure of declared corporate income tax 2003-2022 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 Distributed profit Fringe benefits Advance CIT of credit institutions Charitable gifts and donations Non-business expenses Payments to non-resident legal persons Million €
  40. 40. Double tax treaties (DTT) • Estonia has 59 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. 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. 42. 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
  43. 43. 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.
  44. 44. • 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%
  45. 45. Social tax revenue and structure million € 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 Employers' payments to natural persons Fringe benefits State (according to social tax law §6) Business income of sole proprietors Social tax Million €
  46. 46. 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.
  47. 47. 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
  48. 48. Taxable person • Person whose taxable supply (excluding import) exceeds 40 000 EUR in a calendar year (as of 2018) • Voluntary compliance possible for anyone, who carries out economic activity in Estonia VAT
  49. 49. 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
  50. 50. Tax rates Standard rate is 20%. Reduced rate is 9% (books, 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
  51. 51. Exempted goods and services are: • postal services • health services • social services • insurance 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
  52. 52. VAT revenue 1994-2022 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 Million €
  53. 53. 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
  54. 54. Excise duty rates on alcohol Unit Excise duty rates 01.01.2019 EU minimum excise duty rates Wine and fermented beverage Hectolitre (up to 6 %): 84,41 EUR (> 6 %): 147,82 EUR 0 Beer 1 % alcohol in hectolitre 16,92 (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 2508 EUR 550 EUR
  55. 55. Excise duty rates on tobacco products Product Excise duty rates 01.01.2019 EU minimum excise duty rates CIGARETTES: 77,50 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) 124,72 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 ) 82,99 EUR 60 EUR or 48% from the retail selling price
  56. 56. Excise duty rates on alternatiive tobacco products Product Excise duty rates 01.01.2019 Tobacco liquid (per millilitre) 0,2 EUR Solid tobacco substitute (steam stones), per kilogramm 82,99 EUR Other alternative tobacco products (tobacco product in the form of gel), per gram 0,2 EUR
  57. 57. Excise duty rates on motor fuels Energy product Excise rates in Estonia 01.01.2019 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) 493 EUR/ 1000 l 330 EUR/ 1000 l Gas oil for specific purposes 133 EUR/ 1000 l 21 EUR/ 1000 l Natural gas for vehicles 47,32 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
  58. 58. 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 01.01.2019 EU minimum excise duty rate business non-business Light fuel oil 493 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* 559 EUR/ 1000 kg 15 EUR/ 1000 kg 15 EUR/ 1000 kg Shale oil 57 EUR/ 1000 kg - - Shale oil** 548 EUR/ 1000 kg - -
  59. 59. Excise duty rates on heating fuels and electricity Energy product Excise rates in Estonia 01.01.2019 EU minimum excise duty rate business non- business Petroleum 330,10 EUR/ 1000 l - - LPG 86,17 EUR/ 1000 kg - - Natural gas 63,31 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 4,47 EUR/ MWh 0,5 EUR/ MWh 1 EUR/ MWh
  60. 60. Excise duty revenue 1994-2022 0 200 400 600 800 1000 1200 1994 1997 2000 2003 2006 2009 2012 2015 2018 2021 Alcohol Tobacco Fuel Source: Statistical Office of Estonia, Ministry of Finance
  61. 61. 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 €
  62. 62. 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.
  63. 63. 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
  64. 64. 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
  65. 65. 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%
  66. 66. 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%
  67. 67. 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.
  68. 68. Background information
  69. 69. GDP Growth 2007–2017 1.5 -4 -2 0 2 4 6 8 IE MT PL SK RO BG LT LU CZ SE EE SI UK AT BE LV NL HUEU28 FR CY EA19 DE DK ES FI HR PT IT EL Average economic growth 2007-2017 Economic growth 2017
  70. 70. Estonian real convergence with the EU (% of EU28 average) 79.1 30 40 50 60 70 80 90 2000 2002 2004 2006 2008 2010 2012 2014 2016 GDP per capita PPS Price level Nominal labour productivity per hour worked
  71. 71. Growth expectations GDP growth, % Consumer price index, % 2018 2019 2018 2019 IMF 3.7 3.2 3.0* 2.5* OECD 3.7 3.2 2.8* 2.5* European Commission 3.5 2.7 2.9* 2.7* Ministry of Finance (Summer 2018) 3.6 3.0 3.3* 3.0* * Harmonised Consumer Price Index (HICP)
  72. 72. General Government budgetary balance 2005-2022 1.1 2.9 2.7 -2.7 -2.2 0.2 1.2 -0.3 -0.2 0.7 0.1 -0.3 -0.4 0.6 0.5 0.4 0.2 0.1 -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
  73. 73. General Government tax burden 1995-2022 33.3 0 5 10 15 20 25 30 35 40 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 Direct taxes Indirect taxes Social security contributions Tax burden % of GDP Source: Statistical Office of Estonia, Ministry of Finance
  74. 74. General Government debt in 2017 Source: Ministry of Finance, Eurostat 8.7 81.6 0 30 60 90 120 150 180 ee lu bg cz ro dk lt lv se pl sk mt nl fi de ie hu si hr at eu28 € uk cy es fr be pt it gr %ofGDP
  75. 75. Tax wedge, single person without children, earns 67% of workers average wage (% of labour cost) 32 34 36 38 40 42 44 46 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 Estonia Latvia Lithuania EU 28 Source: European Commission http://europa.eu/economy_finance/db_indicators/tab/#, Ministry of Finance

×