Residence is the decisive factor in determining the scope of individual income tax liability in Estonia.
While individuals resident in Estonia are subject to tax on worldwide income (with some exceptions as regards income from employment abroad), non-residents are liable to income tax on Estonian-sourced income and income received from non-resident legal entity or via permanent establishment for performance of functions of the member of management or supervisory body of the legal entity or permanent establishment in Estonia.
A non-resident is subject to a final withholding tax of 21 percent on Estonian source income.
The official currency of Estonia is the Euro (EUR). Estonia has a decimal currency system with 100 cents making up one Euro (EUR).
Herein, host country refers to the country to which the employee is assigned. Home country refers to the country where the assignee normally lives when he/she is not on assignment.
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