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Estonia |
Latvia |
Lithuania |
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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. |
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Withholding tax rates: |
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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) |
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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% |
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Royalties |
20% to residents, 10% to non-residents or N/A, in case the exemption applies |
N/A |
0% or 10% |
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Management/ consulting fee |
20% |
20%, exemption may be applied according to DDT |
N/A |
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alienation of immovable property |
20% |
3% |
15% |
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Rent/lease of real estate income |
20% |
5% |
15% |
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Wage taxes: |
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Minimum monthly salary |
EUR 584 |
EUR 500 |
EUR 642 |
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PIT rates |
-20%; -Monthly basic exemption- EUR 500[2].
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-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 |
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Social security tax rates: |
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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%. |
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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% |
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Solidarity tax |
N/A |
25 % from income exceeding EUR 62,800 |
N/A |
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Value-added tax |
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Value added tax rates |
20%, 9% and 0% |
21%, 12% and 5% |
21%, 9% 5% and 0%. Compensational rate for farmers is 6%. |
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VAT registration thresholds |
EUR 40,000 |
EUR 40,000 |
EUR 45,000 |
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Annual EU distance selling thresholds |
EUR 35,000 |
EUR 10,000 |
EUR 35,000
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Intrastat reporting |
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Arrivals |
EUR 230,000 |
EUR 230,000 |
EUR 250,000 |
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Dispatches |
EUR 130,000 |
EUR 120,000 |
EUR 150,000 |
[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).
