# Contractors, freelancers and staff abroad: a guide for Estonian companies

When an Estonian OÜ can pay a contractor instead of an employee, what it withholds for freelancers abroad, how the A1 certificate works, and the tax of an FIE invoice.

Law as of 30 Sept 2026. General information, not advice for your situation.

Many Estonian companies, and most companies run by e-residents, work with people who are not ordinary employees in Estonia: freelancers, contractors abroad, sole proprietors, and employees who live in another country. This guide explains where the law draws the line between a contractor and an employee, which taxes the company withholds or pays in each case, and which country's social security applies to people who work across borders.

**In short**

- The facts of the relationship decide whether it is employment, not the title of the contract.
- A freelancer who works only outside Estonia usually costs the company no Estonian income tax or social tax.
- A private individual in Estonia under a civil contract is taxed almost like an employee. A registered sole proprietor (FIE) is not.
- Social security within the EU follows Regulation 883/2004. The A1 certificate shows which country's system applies.
- A remote employee abroad can oblige the company to register as an employer in that country.

## Employment contract or contract for services?

An employment contract exists when a natural person works under the management and control of another person, for pay ([Employment Contracts Act § 1(1)](https://www.riigiteataja.ee/en/akt/510072026004#para1)). A contractor under a contract for services (töövõtuleping) owes a result ([Law of Obligations Act § 635](https://www.riigiteataja.ee/en/akt/510092026001#para635)). A mandatary under an authorisation agreement (käsundusleping) owes a service with due care ([§ 619](https://www.riigiteataja.ee/en/akt/510092026001#para619)). The employment rules do not apply when the person is to a significant extent independent in choosing the manner, time and place of the work ([Employment Contracts Act § 1(4)](https://www.riigiteataja.ee/en/akt/510072026004#para1)).

The question page [contract for services or employment contract](https://oscaraccountant.com/en/guides/contractors-and-cross-border-workers/contract-for-services) covers the two civil contracts and their taxes in full.

## When can a contractor be treated as an employee?

Whenever the real content of the relationship is employment. Two routes lead there.

**Labour law.** When a person works for another in circumstances where pay can be expected, the law presumes an employment contract ([Employment Contracts Act § 1(2)](https://www.riigiteataja.ee/en/akt/510072026004#para1)). The company must then show that the person was really independent ([§ 1(4)](https://www.riigiteataja.ee/en/akt/510072026004#para1)). A term that removes an employee's statutory rights is void ([§ 2](https://www.riigiteataja.ee/en/akt/510072026004#para2)). So a person found to be an employee gets the rights of an employee, for example 28 calendar days of annual holiday ([§ 55](https://www.riigiteataja.ee/en/akt/510072026004#para55)) and compensation of unused holiday when the contract ends ([§ 71](https://www.riigiteataja.ee/en/akt/510072026004#para71)).

The claim periods are short:

- A claim for wages: three years from the date the wages fell due ([§ 29(9)](https://www.riigiteataja.ee/en/akt/510072026004#para29)).
- Other claims from the employment relationship: four months from the day the person knew or should have known of the violation ([§ 3^1](https://www.riigiteataja.ee/en/akt/510072026004#para3b1)).
- A claim that a termination is void: 30 calendar days from receiving the notice ([§ 105(1)](https://www.riigiteataja.ee/en/akt/510072026004#para105)).

When a court or a labour dispute committee ends the contract after a void termination, the employer pays compensation of three months' average wages, which the body can adjust ([§ 109(1)](https://www.riigiteataja.ee/en/akt/510072026004#para109)).

**Tax law.** When a transaction is made to avoid tax, the Tax and Customs Board taxes its real economic content ([Taxation Act § 84](https://www.riigiteataja.ee/en/akt/511082026003#para84)) and ignores sham transactions ([§ 83(4)](https://www.riigiteataja.ee/en/akt/511082026003#para83)). It can establish the start and end of employment itself ([§ 25^3](https://www.riigiteataja.ee/en/akt/511082026003#para25b3)). The company then owes the payroll taxes it should have paid: 33% social tax ([Social Tax Act § 7(1)](https://www.riigiteataja.ee/en/akt/525052026001#para7)) on at least the monthly minimum base ([§ 2(2)](https://www.riigiteataja.ee/en/akt/525052026001#para2), [§ 2^1](https://www.riigiteataja.ee/en/akt/525052026001#para2b1); 886 euros a month in 2026, per the [Tax and Customs Board](https://www.emta.ee/en/business-client/taxes-and-payment/income-and-social-taxes/tax-rates)), with the exceptions of [§ 2(2^1) and (3)](https://www.riigiteataja.ee/en/akt/525052026001#para2), for example when the person has another employer that applies the basic exemption, and the income tax and unemployment insurance it should have withheld.

Interest runs at 0.06% a day from the original due date ([Taxation Act § 115(1)](https://www.riigiteataja.ee/en/akt/511082026003#para115), [§ 117(1)](https://www.riigiteataja.ee/en/akt/511082026003#para117)). The Board can assess tax for three years, or five years for intentional non-payment or non-withholding ([§ 98(1)](https://www.riigiteataja.ee/en/akt/511082026003#para98)). A company that does not register work in the employment register can also face a non-compliance levy ([§ 25^8](https://www.riigiteataja.ee/en/akt/511082026003#para25b8)).

The two routes are separate. A worker can claim employee rights without any tax case, and the Board can reassess without any worker complaint.

## Does a long-term contractor get holiday pay?

Not from the contract. Annual holiday and the compensation of unused holiday are rights of employees ([Employment Contracts Act § 55](https://www.riigiteataja.ee/en/akt/510072026004#para55), [§ 71](https://www.riigiteataja.ee/en/akt/510072026004#para71)). A contract for services or an authorisation agreement carries them only if the parties agreed on them.

The contractor can get them only by showing that the relationship was in fact employment. That is harder when the contractor invoiced through an own company, because an employment contract is made with a natural person ([§ 1(1)](https://www.riigiteataja.ee/en/akt/510072026004#para1)). Even then, the claim for annual holiday expires one year after the end of the calendar year for which it was earned ([§ 68(6)](https://www.riigiteataja.ee/en/akt/510072026004#para68)), and the four-month claim period applies ([§ 3^1](https://www.riigiteataja.ee/en/akt/510072026004#para3b1)).

## Do you withhold tax when you pay a freelancer abroad?

Usually not, when the work is done outside Estonia. A non-resident pays Estonian income tax only on Estonian-source income ([Income Tax Act § 29](https://www.riigiteataja.ee/en/akt/508052026001#para29)), and no social tax is due on a fee paid to a non-resident for work performed abroad ([Social Tax Act § 3 clause 7](https://www.riigiteataja.ee/en/akt/525052026001#para3)).

Withholding applies in three cases:

| Case                                                                                                              | Withholding | Legal basis                                                                                                                                                        |
| ----------------------------------------------------------------------------------------------------------------- | ----------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| A foreign individual works in Estonia under a civil contract                                                      | 22%         | [Income Tax Act § 41 clause 3](https://www.riigiteataja.ee/en/akt/508052026001#para41), [§ 43(1) clause 1](https://www.riigiteataja.ee/en/akt/508052026001#para43) |
| A foreign company provides a service in Estonia                                                                   | 10%         | [§ 41 clause 10](https://www.riigiteataja.ee/en/akt/508052026001#para41), [§ 43(1) clause 2](https://www.riigiteataja.ee/en/akt/508052026001#para43)               |
| A company in a non-cooperative jurisdiction provides a service to an Estonian resident, wherever the work is done | 22%         | [§ 41 clause 11](https://www.riigiteataja.ee/en/akt/508052026001#para41), [§ 43(1) clause 1](https://www.riigiteataja.ee/en/akt/508052026001#para43)               |

No income tax is withheld from a sole proprietor entered in the Estonian commercial register, or in the register of another state of the European Economic Area, when the fee is business income ([§ 40(2) clause 3](https://www.riigiteataja.ee/en/akt/508052026001#para40)). A tax treaty can lower the rate. The lower rate applies when the company files the recipient's tax residence certificate with the return, or when the recipient's residence is already in the register of taxable persons ([§ 43(2)](https://www.riigiteataja.ee/en/akt/508052026001#para43)).

Social tax is a separate test. On a fee for work in Estonia, the company still pays 33% social tax ([Social Tax Act § 2(1) clause 6](https://www.riigiteataja.ee/en/akt/525052026001#para2), [§ 9(1) clause 2](https://www.riigiteataja.ee/en/akt/525052026001#para9)), unless one of these applies:

- the person is an FIE in the Estonian commercial register and the fee is business income ([§ 9(1) clause 2](https://www.riigiteataja.ee/en/akt/525052026001#para9));
- the person works as a self-employed person abroad and proves that social contributions are paid on the fee there ([§ 3 clause 12](https://www.riigiteataja.ee/en/akt/525052026001#para3));
- a social security treaty places the person's social security in another state ([§ 3 clause 15](https://www.riigiteataja.ee/en/akt/525052026001#para3));
- within the EU, [Regulation 883/2004](https://eur-lex.europa.eu/eli/reg/2004/883/oj), shown by an A1 certificate, places it in another state. The regulation applies directly.

The company pays withheld tax and files the TSD by the 10th day of the following month ([Income Tax Act § 40(4) and (5)](https://www.riigiteataja.ee/en/akt/508052026001#para40)). Keep the contract, proof of where the work was done, and the residence certificate. The [Tax and Customs Board](https://www.emta.ee/en/private-client/foreigner-non-resident/non-residents/income-employment) explains the non-resident rules.

**VAT on services from abroad.** A VAT-registered company calculates and pays 24% VAT itself (reverse charge) on a service from a foreign business that is not registered for VAT in Estonia ([VAT Act § 3(4) clause 2](https://www.riigiteataja.ee/en/akt/530122025010#para3), [§ 15(1)](https://www.riigiteataja.ee/en/akt/530122025010#para15)). A company that is not VAT registered may have to register as a taxable person with limited liability from the day it receives such a service ([§ 21(1)](https://www.riigiteataja.ee/en/akt/530122025010#para21)). The [guide on cross-border services](https://oscaraccountant.com/en/guides/vat-cross-border-services-oss) covers this in detail.

## What should a contract with a contractor abroad cover?

At least the scope, the fee, the independence of the contractor, intellectual property, confidentiality, the term and termination, and the governing law. The parties may choose the law of the contract ([Rome I Regulation, Article 3](https://eur-lex.europa.eu/eli/reg/2008/593/oj)).

- **Nature.** Choose between a result ([Law of Obligations Act § 635](https://www.riigiteataja.ee/en/akt/510092026001#para635)) and a service ([§ 619](https://www.riigiteataja.ee/en/akt/510092026001#para619)), and describe how the contractor works independently.
- **Fee and taxes.** The fee, the currency, the invoice terms, and that the contractor pays the contractor's own taxes and social contributions.
- **Confidentiality.** The law already binds a mandatary to confidentiality during and after the contract ([§ 625](https://www.riigiteataja.ee/en/akt/510092026001#para625)), but define what is confidential.
- **Termination.** Without a clause, either party may cancel an authorisation agreement of unspecified term at any time ([§ 630](https://www.riigiteataja.ee/en/akt/510092026001#para630)), and a customer may cancel a contract for services at any time but pays the fee less the contractor's savings ([§ 655](https://www.riigiteataja.ee/en/akt/510092026001#para655)). Set a notice period.
- **Equity.** Put any option promise in a separate option agreement, and name the holder.

The contractor's own country matters too. A person who works in one EU state is covered by that state's social security legislation ([Regulation 883/2004, Article 11(3)(a)](https://eur-lex.europa.eu/eli/reg/2004/883/oj)). If that state treats the person as an employee, the company has employer obligations there, even with no establishment in that state ([Regulation 987/2009, Article 21](https://eur-lex.europa.eu/eli/reg/2009/987/oj)). A person who is in fact an employee keeps the mandatory protections of the country where the person habitually works, whatever law the contract chooses ([Rome I Regulation, Article 8](https://eur-lex.europa.eu/eli/reg/2008/593/oj)). Check that country's rules on false self-employment before you sign.

## Which country taxes a remote employee in another EU state?

Income tax usually goes to the country where the employee lives and works. Social security follows Regulation 883/2004, separately from income tax.

**Income tax.** A person is an Estonian resident when the person's place of residence is in Estonia or the person stays in Estonia at least 183 days in 12 consecutive months ([Income Tax Act § 6(1)](https://www.riigiteataja.ee/en/akt/508052026001#para6)). A non-resident employee pays Estonian income tax only on income from employment in Estonia ([§ 29(1)](https://www.riigiteataja.ee/en/akt/508052026001#para29)). An Estonian resident who works abroad pays no Estonian income tax on that pay when the person stayed abroad for that work at least 183 days in 12 consecutive months and the pay was taxable there, shown by a certificate of the foreign tax ([§ 13(4)](https://www.riigiteataja.ee/en/akt/508052026001#para13)).

**Social security.** Under [Regulation 883/2004](https://eur-lex.europa.eu/eli/reg/2004/883/oj):

- a person who works in one state only is covered by that state (Article 11(3)(a));
- an employee whom the Estonian employer sends to work in another state for up to 24 months stays under Estonian legislation, if the employee does not replace another posted person, the employer normally carries out substantial activities in Estonia (not only internal management), and the employee was subject to Estonian legislation just before the posting (Article 12(1); [Regulation 987/2009, Article 14](https://eur-lex.europa.eu/eli/reg/2009/987/oj));
- a person who works in two or more states follows the rules of Article 13.

If the employee is covered in the other state, the company pays that state's contributions and no Estonian social tax. The regulation applies directly in every member state, and a foreign A1 certificate proves the cover (see the [Tax and Customs Board](https://www.emta.ee/en/business-client/registration-business/non-residents-e-residents/tax-liabilities-companies)). For a non-resident who works abroad, no Estonian social tax is due on the pay in any case ([Social Tax Act § 3 clause 7](https://www.riigiteataja.ee/en/akt/525052026001#para3)).

## What is an A1 certificate?

The A1 certificate (A1 tõend) shows which EU or EEA state's, or Switzerland's, social security legislation applies to a person (see the [Tax and Customs Board](https://www.emta.ee/en/business-client/registration-business/non-residents-e-residents/tax-liabilities-companies)). The institution of the state whose legislation applies issues it ([Regulation 987/2009, Article 19(2)](https://eur-lex.europa.eu/eli/reg/2009/987/oj)), and it binds the institutions of the other states until the issuing state withdraws it ([Article 5(1)](https://eur-lex.europa.eu/eli/reg/2009/987/oj)).

- **Estonian A1.** The company keeps paying Estonian social tax on the person, for example during a posting of up to 24 months that meets the conditions of Article 12 ([Regulation 883/2004, Article 12](https://eur-lex.europa.eu/eli/reg/2004/883/oj)).
- **Foreign A1.** No Estonian social tax or unemployment insurance is due, according to the [Tax and Customs Board](https://www.emta.ee/en/business-client/registration-business/non-residents-e-residents/tax-liabilities-companies).

The A1 covers social security only. Income tax follows the Income Tax Act and the tax treaty. Keep the A1 with the payroll records.

## Does a remote employee abroad create a permanent establishment?

Often a registration duty, sometimes a permanent establishment. An employer with no establishment in the state that covers the employee must still meet the employer's social security obligations there ([Regulation 987/2009, Article 21](https://eur-lex.europa.eu/eli/reg/2009/987/oj)). Estonia applies the same logic in reverse: a non-resident employer whose employees work in Estonia must register with the Tax and Customs Board ([Taxation Act § 18(1) clause 7](https://www.riigiteataja.ee/en/akt/511082026003#para18)).

On the Estonian side, the company enters in the employment register only work that creates a tax liability in Estonia ([Taxation Act § 25^1(4)](https://www.riigiteataja.ee/en/akt/511082026003#para25b1)).

Whether the company has a permanent establishment abroad is decided by the other state's law and the tax treaty. Estonia's own definition, for the reverse case, shows the risk: a permanent establishment can arise through a representative authorised to conclude contracts for a non-resident ([Income Tax Act § 7(1) and (2)](https://www.riigiteataja.ee/en/akt/508052026001#para7)). A salesperson or senior manager who signs contracts abroad is a higher risk than an engineer who works from home by choice. The [guide on founder residency and permanent establishment](https://oscaraccountant.com/en/guides/founder-residency-pe-cfc) covers the founder's own case.

## Can an Estonian resident invoice the company as an FIE?

Yes, if the person is registered as a sole proprietor (FIE) and the work is the person's independent business. A sole proprietor applies for entry in the commercial register before starting ([Commercial Code § 3(2)](https://www.riigiteataja.ee/en/akt/527022024004#para3)). For a payment to an FIE that is business income, the company:

- withholds no income tax ([Income Tax Act § 40(2) clause 3](https://www.riigiteataja.ee/en/akt/508052026001#para40));
- pays no social tax ([Social Tax Act § 9(1) clause 2](https://www.riigiteataja.ee/en/akt/525052026001#para9));
- makes no entry in the employment register ([Taxation Act § 25^1(4) clause 2](https://www.riigiteataja.ee/en/akt/511082026003#para25b1)).

The FIE pays income tax and social tax on the business profit. An FIE registers for VAT once the FIE's taxable supplies in Estonia pass 40,000 euros in a calendar year ([VAT Act § 19(1)](https://www.riigiteataja.ee/en/akt/530122025010#para19)).

A private individual who is not an FIE cannot invoice tax free. The company withholds and pays almost the same taxes as on a salary, as the [contract for services page](https://oscaraccountant.com/en/guides/contractors-and-cross-border-workers/contract-for-services#how-is-the-fee-of-a-private-individual-taxed) shows, and registers the person in the employment register ([Taxation Act § 25^1(4) clause 2](https://www.riigiteataja.ee/en/akt/511082026003#para25b1), [§ 25^2(3)](https://www.riigiteataja.ee/en/akt/511082026003#para25b2)).

**The entrepreneur account (ettevõtluskonto)** is not a route for a regular contractor. The bank withholds 20% of every amount received ([Simplified Business Income Taxation Act § 4(1)](https://www.riigiteataja.ee/en/akt/517122025005#para4)), and a VAT-registered person cannot hold one ([§ 2(2)](https://www.riigiteataja.ee/en/akt/517122025005#para2)). A payment to an individual for a service taxed through the account is not a business expense of the company ([Income Tax Act § 34 clause 13](https://www.riigiteataja.ee/en/akt/508052026001#para34), [§ 51](https://www.riigiteataja.ee/en/akt/508052026001#para51)). When the account replaces an employment contract or a service contract, the company pays income tax of 22/78 on the payment as an expense not related to business, according to the [Tax and Customs Board](https://www.emta.ee/en/private-client/taxes-and-payment/taxable-income/entrepreneur-account). The [business account or OÜ page](https://oscaraccountant.com/en/guides/founding-an-ou/business-account-vs-ou) compares the account with a company.

An FIE label does not prevent reclassification. A full-time FIE with one client, fixed hours and a manager is what the Board looks for.

## How are stock options of contractors taxed?

The same way as an employee's options. A natural person who works under a contract for services, an authorisation agreement or another civil contract counts as an employee for the fringe benefit rules ([Income Tax Act § 48(3)](https://www.riigiteataja.ee/en/akt/508052026001#para48)).

- The grant of an option is not a fringe benefit ([§ 48(5^3)](https://www.riigiteataja.ee/en/akt/508052026001#para48)).
- Acquiring shares of the employer or its group company at least three years after the grant is not a fringe benefit ([§ 48(5^3)](https://www.riigiteataja.ee/en/akt/508052026001#para48)).
- If the option agreement is not digitally signed or notarised, the company submits it to the Tax and Customs Board within five working days of signing ([§ 48(5^3)](https://www.riigiteataja.ee/en/akt/508052026001#para48)).
- An earlier acquisition, or a sale of the option, is a fringe benefit ([§ 48(4) clause 11](https://www.riigiteataja.ee/en/akt/508052026001#para48)). The company then pays income tax on it ([§ 48(1)](https://www.riigiteataja.ee/en/akt/508052026001#para48)) at 22/78 ([§ 4](https://www.riigiteataja.ee/en/akt/508052026001#para4)) and social tax on the benefit and that income tax ([Social Tax Act § 2(1) clause 7](https://www.riigiteataja.ee/en/akt/525052026001#para2)).

A fringe benefit given for work abroad is free of Estonian income tax when the conditions of [Income Tax Act § 13(4)](https://www.riigiteataja.ee/en/akt/508052026001#para13) are met ([§ 48(9)](https://www.riigiteataja.ee/en/akt/508052026001#para48)). If the services contract is with the contractor's own company, state clearly in the option plan who holds the option, so that the option stays linked to the person who provides the work.

General information, not advice for your situation. The law as in force on 30.09.2026.

## More on this topic

- [Contract for services or employment contract: käsundusleping and töövõtuleping in Estonia](https://oscaraccountant.com/en/guides/contractors-and-cross-border-workers/contract-for-services): How a käsundusleping or töövõtuleping differs from an employment contract in Estonia, how the fee is taxed, and when the label does not protect the company.

## Let Oscar do the work

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## Sources

- [Employment Contracts Act § 1](https://www.riigiteataja.ee/en/akt/510072026004#para1)
- [Employment Contracts Act § 2](https://www.riigiteataja.ee/en/akt/510072026004#para2)
- [Employment Contracts Act § 3^1](https://www.riigiteataja.ee/en/akt/510072026004#para3b1)
- [Employment Contracts Act § 29](https://www.riigiteataja.ee/en/akt/510072026004#para29)
- [Employment Contracts Act § 55](https://www.riigiteataja.ee/en/akt/510072026004#para55)
- [Employment Contracts Act § 68](https://www.riigiteataja.ee/en/akt/510072026004#para68)
- [Employment Contracts Act § 71](https://www.riigiteataja.ee/en/akt/510072026004#para71)
- [Employment Contracts Act § 105](https://www.riigiteataja.ee/en/akt/510072026004#para105)
- [Employment Contracts Act § 109](https://www.riigiteataja.ee/en/akt/510072026004#para109)
- [Law of Obligations Act § 619](https://www.riigiteataja.ee/en/akt/510092026001#para619)
- [Law of Obligations Act § 625](https://www.riigiteataja.ee/en/akt/510092026001#para625)
- [Law of Obligations Act § 630](https://www.riigiteataja.ee/en/akt/510092026001#para630)
- [Law of Obligations Act § 635](https://www.riigiteataja.ee/en/akt/510092026001#para635)
- [Law of Obligations Act § 655](https://www.riigiteataja.ee/en/akt/510092026001#para655)
- [Taxation Act § 18](https://www.riigiteataja.ee/en/akt/511082026003#para18)
- [Taxation Act § 25^1](https://www.riigiteataja.ee/en/akt/511082026003#para25b1)
- [Taxation Act § 25^2](https://www.riigiteataja.ee/en/akt/511082026003#para25b2)
- [Taxation Act § 25^3](https://www.riigiteataja.ee/en/akt/511082026003#para25b3)
- [Taxation Act § 25^8](https://www.riigiteataja.ee/en/akt/511082026003#para25b8)
- [Taxation Act § 83](https://www.riigiteataja.ee/en/akt/511082026003#para83)
- [Taxation Act § 84](https://www.riigiteataja.ee/en/akt/511082026003#para84)
- [Taxation Act § 98](https://www.riigiteataja.ee/en/akt/511082026003#para98)
- [Taxation Act § 115](https://www.riigiteataja.ee/en/akt/511082026003#para115)
- [Taxation Act § 117](https://www.riigiteataja.ee/en/akt/511082026003#para117)
- [Income Tax Act § 4](https://www.riigiteataja.ee/en/akt/508052026001#para4)
- [Income Tax Act § 6](https://www.riigiteataja.ee/en/akt/508052026001#para6)
- [Income Tax Act § 7](https://www.riigiteataja.ee/en/akt/508052026001#para7)
- [Income Tax Act § 13](https://www.riigiteataja.ee/en/akt/508052026001#para13)
- [Income Tax Act § 29](https://www.riigiteataja.ee/en/akt/508052026001#para29)
- [Income Tax Act § 34](https://www.riigiteataja.ee/en/akt/508052026001#para34)
- [Income Tax Act § 40](https://www.riigiteataja.ee/en/akt/508052026001#para40)
- [Income Tax Act § 41](https://www.riigiteataja.ee/en/akt/508052026001#para41)
- [Income Tax Act § 43](https://www.riigiteataja.ee/en/akt/508052026001#para43)
- [Income Tax Act § 48](https://www.riigiteataja.ee/en/akt/508052026001#para48)
- [Income Tax Act § 51](https://www.riigiteataja.ee/en/akt/508052026001#para51)
- [Social Tax Act § 2](https://www.riigiteataja.ee/en/akt/525052026001#para2)
- [Social Tax Act § 2^1](https://www.riigiteataja.ee/en/akt/525052026001#para2b1)
- [Social Tax Act § 3](https://www.riigiteataja.ee/en/akt/525052026001#para3)
- [Social Tax Act § 7](https://www.riigiteataja.ee/en/akt/525052026001#para7)
- [Social Tax Act § 9](https://www.riigiteataja.ee/en/akt/525052026001#para9)
- [VAT Act § 3](https://www.riigiteataja.ee/en/akt/530122025010#para3)
- [VAT Act § 15](https://www.riigiteataja.ee/en/akt/530122025010#para15)
- [VAT Act § 19](https://www.riigiteataja.ee/en/akt/530122025010#para19)
- [VAT Act § 21](https://www.riigiteataja.ee/en/akt/530122025010#para21)
- [Commercial Code § 3](https://www.riigiteataja.ee/en/akt/527022024004#para3)
- [Simplified Business Income Taxation Act § 2](https://www.riigiteataja.ee/en/akt/517122025005#para2)
- [Simplified Business Income Taxation Act § 4](https://www.riigiteataja.ee/en/akt/517122025005#para4)
- [Regulation (EC) No 883/2004 on the coordination of social security systems](https://eur-lex.europa.eu/eli/reg/2004/883/oj)
- [Regulation (EC) No 987/2009, implementing Regulation 883/2004](https://eur-lex.europa.eu/eli/reg/2009/987/oj)
- [Regulation (EC) No 593/2008 (Rome I)](https://eur-lex.europa.eu/eli/reg/2008/593/oj)
- [Tax and Customs Board: tax rates](https://www.emta.ee/en/business-client/taxes-and-payment/income-and-social-taxes/tax-rates)
- [Tax and Customs Board: tax liabilities of companies with non-resident owners and staff](https://www.emta.ee/en/business-client/registration-business/non-residents-e-residents/tax-liabilities-companies)
- [Tax and Customs Board: income from employment of non-residents](https://www.emta.ee/en/private-client/foreigner-non-resident/non-residents/income-employment)
- [Tax and Customs Board: employment register](https://www.emta.ee/en/business-client/registration-business/employment-register)
- [Tax and Customs Board: entrepreneur account](https://www.emta.ee/en/private-client/taxes-and-payment/taxable-income/entrepreneur-account)

## Related pages

- [Contract for services or employment contract: käsundusleping and töövõtuleping in Estonia](https://oscaraccountant.com/en/guides/contractors-and-cross-border-workers/contract-for-services): How a käsundusleping or töövõtuleping differs from an employment contract in Estonia, how the fee is taxed, and when the label does not protect the company.
- [Hiring employees in Estonia: contracts, registration and foreign staff](https://oscaraccountant.com/en/guides/hiring-employees): What an Estonian OÜ must do before its first employee starts: the written contract, fixed terms and probation, the employment register, the minimum wage and the employer cost, family members, board members, non-EU staff and interns.
- [Paying yourself as the founder of an Estonian OÜ: board fee, salary and social tax](https://oscaraccountant.com/en/guides/founder-remuneration): How the owner-manager of an Estonian OÜ is paid: the board member fee, a salary, the minimum social tax, health insurance, the basic exemption and the TSD.
- [The founder abroad: tax residency, permanent establishment and CFC rules](https://oscaraccountant.com/en/guides/founder-residency-pe-cfc): How Estonia decides tax residency, when a home office abroad creates a permanent establishment, and how your home country can tax your OÜ.
- [VAT on cross-border services, digital sales and the OSS](https://oscaraccountant.com/en/guides/vat-cross-border-services-oss): How an Estonian company charges VAT on services to EU and non-EU customers, checks VAT numbers in VIES, and uses the OSS and IOSS for B2C sales.
- [Entrepreneur account, sole proprietor (FIE) or OÜ: which one for a freelancer?](https://oscaraccountant.com/en/guides/founding-an-ou/business-account-vs-ou): How the Estonian entrepreneur account (ettevõtluskonto), a sole proprietor (FIE) and an OÜ are taxed, what each costs you, and when an OÜ is the better choice.
- [Estonian salary calculator](https://oscaraccountant.com/en/tools/salary-calculator): Work out the net pay and the employer's total cost of an Estonian salary or board member fee, with income tax, the basic exemption, social tax, unemployment insurance and the funded pension.
- [Social tax (sotsiaalmaks)](https://oscaraccountant.com/en/glossary/social-tax): What sotsiaalmaks is: the 33 percent tax an Estonian employer pays on top of pay, the 2026 minimum base of 886 euros, and how it funds health insurance and pension.
- [TSD (income and social tax return)](https://oscaraccountant.com/en/glossary/tsd): What the TSD is: the monthly Estonian return for income tax, social tax, unemployment insurance and the funded pension, due on the 10th of the next month.

Reviewed on 10 Oct 2026. Law as of 30 Sept 2026. General information, not advice for your situation.

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