Tax Amendments in Estonia in 2016
In 2016 the tax rates will not change. Starting from 01.01.2016 the basic exemption (non-taxable amount) in case of making payments to resident natural persons is 170 euros per month.
Provisions of the Labour Market Services and Benefits Act that apply to annual refunds to low-paid employees will enter into force as of 2016. Therefore, starting from tax return TSD submitted for December 2015, the tax returns TSD must report the working time to two decimal places of every employee or official, which has been agreed between the employer and employee. According to Clause 5(1)7) of the Employment Contracts Act a written document of an employment contract shall, among other, contain data on the time when the employee performs the agreed duties (working time). An employee must know the working time i.e. the time when the employee is obligated to perform his or her duties. An employee and an employer may agree on full-time or part-time work.
From 01.01.2016 the tax-exempt daily allowance that is paid to an official, employee or a member of a management or control body in case of a business trip abroad will be 50 euros for the first 15 days of a business trip, but not more than for 15 days in a calendar month, and 32 euros for each following day. The minimum rate of daily allowance in case of a business trip abroad will still be 22.37 euros per day.
Starting from 1 January 2016 the minimum hourly wage in case of full-time employment is 2.54 euros and the minimum monthly wage is 430 euros.