Accounting, Payroll, Tax & Legal since 1989

Estonia 2016 Tax Changes

Income Tax

1.     Basic exemption. The basic exemption deductible from the income of a resident natural person during a period of taxation is 2040 euros per year (170 month) 

2.     Increased basic exemption in event of pension shall be 2700 per year (225 per month).  

3.     Increased basic exemption upon provision of maintenance to child shall be 1848 per year (154 per month).

4.     Restriction on deductions from taxable income all together shall be 1200 (1920 euros in 2015).

5.     Abolished will be income tax exemptions for driving schools fees and hobby trainings for adults.  

6.     Taxable shall be 80% of the natural person income on the basis of the revenue from lease of dwelling (20% is tax-free and is rental related expenses).  

7.     The tax exempt limit of daily allowances during assignments abroad is 50 euros, but not more than 15 days in month. If the assignments is longer, then the daily allowances in 32 euros from the 16. day. 

Excise duties

1.     Alcohol excise rate will increase by 15% from February.  

2.     Tobacco excise rate will increase by 8% from June.  

3.     Excise duties on diesel will rise by 14%, for petrol 10% from January.  



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