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Full overview of Baltic Tax Rates in 2021


BALTIC TAX RATES FROM 1st of JANUARY 2021

 

 

Estonia

Latvia

Lithuania

Corporate income tax (CIT) rate

CIT is payable upon

profit distributions (the deemed profit distribution).

CIT rate is 20%, calculated as 20/80 from taxable net payment.

Regularly paid dividends are subject to a reduced rate of 14% (14/86 from net dividends).

CIT is payable upon

profit distributions (the deemed profit distribution).

CIT rate is 20%, calculated as 20/80 from taxable net payment.

CIT is calculated as follows: Total income – non taxable income – allowed deductions – limited deductions = taxable profit. Standard CIT rate is 15%. 20% CIT rate is applicable to credit institutions.

0% and 5% rates may be applied under certain conditions.

Withholding tax rates:

Dividends

20% or 14%[1]

0% or 20%/10%, reduced rates may be applied according to DDT

0% or 15%, reduced rates may be applied according to Double Treaty Taxation (DTT)

Interest

20% to residents or N/A for non-residents

0% or 20%/10%, reduced rates may be applied according to DDT

0% or 10%

Royalties

20% to residents, 10% to non-residents or N/A, in case the exemption applies

N/A

0% or 10%

Management/

consulting fee

20%

20%, exemption may be applied according to DDT

N/A

alienation of immovable property

20%

3%

15%

Rent/lease of real estate income

20%

5%

15%

Wage taxes:

Minimum monthly salary

EUR 584

EUR 500

EUR 642

PIT rates

-      20%;

- Monthly basic exemption- EUR 500[2]

 

- 20% rate on annual income up to EUR 20,004;

- 23% rate on annual income exceeding EUR 20,004 to            EUR 62,800;

-  31% rate on annual income

exceeding EUR 62,800.

-  15% rate is applicable for sickness pay

-  20% rate on annual income

-  32% rate on annual income

Social security tax rates:

 

 

 

Employee rate

- 1.6% unemployment insurance premium;

- 2% funded pension contribution (if the person as joined 2nd pillar.

10.50%

Employee’s social security contributions - 19,5%, Participation of employee in pension scheme (optional) - 2,4-3%.

Employer rate

- 33% social tax (the minimum monthly obligation for social tax is 584 EUR, it means, for an employer, the minimum obligation for social tax is 192,72EUR monthly);

- 0.8% unemployment insurance premium.

23.59%

1.61-3.75%

Solidarity tax

N/A

25 % from income exceeding EUR 62,800

N/A

Value-added tax

Value added tax rates

20%, 9% and 0%

21%, 12% and 5%

21%, 9% 5% and 0%. Compensational rate for farmers is 6%.

VAT registration thresholds

EUR 40,000

EUR 40,000

EUR 45,000

Annual EU distance selling thresholds

EUR 35,000

EUR 10,000

EUR 35,000

 

Intrastat reporting

Arrivals

EUR 230,000

EUR 230,000

EUR 250,000

Dispatches

EUR 130,000

EUR 120,000

EUR 150,000

 

 

Tallinn, Estonia

Leinonen OÜ

Põhja pst. 25

10415

+ 372 6117 700

contact@leinonen.ee

 

 

Riga, Latvia

Leinonen SIA

Vilandes iela 3           LV-1010

+ 371 6732 3901

leinonen@leinonen.lv

 

 

Vilnius, Lithuania

Leinonen UAB

Vilnius, Labdariu 5 01120

+ 370 5237 5040

leinonen@leinonen.lt


[1] Regularly paid dividends are subject to a discount rate of 14/86. Please note: if the payment is made to a private person, income tax of 7% is charged on dividends.

The income tax withheld can be 5% or 0% (depending on the tax agreement) in the case of a non-resident shareholder.


[2] The annual basic exemption is up to 6,000 EUR (500 EUR per month). If a person’s annual income is up to 14,400 EUR, they can use the exemption in full. If the annual income is between 14,400 to 25,200 EUR, the amount of the basic exemption is reduced pursuant to the following formula: 6,000 – 6,000 / 10,800 × (amount of income – 14,400).





01.02.21


Author:   

Kristiina Alt

Kristiina Alt

Tax Advisor

Email: kristiina.alt@leinonen.ee

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