In this article we will describe the options for the payment of salary to a hired
It is important to consider that a director in an Estonian company
is also a hired one.
a company employee who, unlike a board member, works on the basis of an employment contract.
Consider two possible options for who can be an employee in the Estonian
companies are resident in Estonia and non-resident in Estonia
. - Employee resident of Estonia
In this case, the standard taxation system applies to an Estonian employee:
- income tax 20%;
- social tax 33%;
- contribution to the pension pillar in the amount of 2%;
- unemployment insurance (employer pays 0.8%, employee pays
This applies to any employee who is a resident of Estonia. - Employee non-resident of Estonia
In such a case, taxes must be paid in the country of tax residence of the employee. The employer, as a rule, also needs to register the employee's country of residence as his employer. In any case, with this option, it is worth clarifying the details with the tax authorities of the employee's country of residence.