Member of the management board – is a position in the company set by the active legislation.
Member of the board provides services to the company on the basis of board member agreement (type of a services provision agreement). The board member agreement is not an employment agreement.

Board member is a resident of Estonia

If the Board member is a resident of Estonia and carries out his obligations in Estonia, then when paying the salary the income tax in the amount of 20% is withheld.
Also the social tax is paid in Estonia and payment to the first pension stage.
Should be noted that no unemployment insurance rate is paid from the salary of a board member.

Board member non-resident of Estonia

In accordance with the active legislation of Estonia the income tax is levied from income of non-resident that he receives as a member of the management board of an Estonian company.
The social tax is also paid.