Source: https://www.emta.ee/eng/business-client/income-expenses-supply-profits/taxation-income-non-residents
Timestamp: 2019-04-19 14:29:08+00:00

Document:
The instructions are provided according to § 15 of the Estonian Taxation Act in order to explain taxation of income of non-residents in Estonia for the purpose of ensuring the uniform application of Acts concerning income tax. The explanations and instructions are not binding on taxable persons. The explanations and instructions are published on the website of the Estonian Tax and Customs Board.
There is a Form R which shall be submitted to the Estonian Tax and Customs Board for informing about changes in the natural persons residency. If you leave or arrive at Estonia, we suggest you to ask help from the tax administration, in order to decide if your residency has changed.
A legal person is a resident if it is established pursuant to Estonian law. European Company (in Latin Societas Europaea, SE) and European Cooperative Society (in Latin Societas Cooperativa Europaea, SCE) are regarded to be residents if their place of establishment is registered in Estonia.
Non-residents (natural and legal persons) have a limited tax liability in Estonia; only the Estonian-source income is taxed in Estonia.
Employers, who grant taxable fringe benefits, included employers who are natural persons and non-residents having a permanent establishment or operate as employers in Estonia pay income tax on fringe benefits.
A non-resident legal person which has a permanent establishment in Estonia has to pay income tax imposed on fringe benefits, gifts, donations and costs of entertaining guests, profit distributions, and expenses and payments not related to business made by a non-resident through a permanent establishment.
If Estonia has concluded an agreement for the avoidance of double taxation and the prevention of fiscal evasion (hereinafter tax treaty) with the resident country of a non-resident, which prescribes more favourable conditions for the Estonian income taxation of the income of non-residents than those provided by the Estonian Income Tax Act, the provisions of the tax treaty apply.
In Estonia, the tax incentives or exemptions arising from tax treaties can be applied only if the recipient of the payment has certified his or her residence status to the tax authority by certificate of residency confirmed by tax administration of the residence country.
Tax relief or tax incentives prescribed by tax treaties may be granted to non-residents at the moment of payment.
Please note that residency should be certified for the purpose and in the sense of the relevant tax treaty and not in the sense of the national law of a foreign country.
The document need not be submitted if valid data on the recipient of income and the residency of the recipient of income have been entered in the register of taxable persons of the Estonian tax administration. The validity of the certificate can be checked on-line via web-site of the Estonian tax administration here.
Otherwise non-resident has to submit a certificate approving the tax residence issued by the competent tax authority of the residence country. Form TM3 (547.39 KB, PDF) available on the website of the Estonian Tax and Customs Board www.emta.ee may be used for certifying the recipient of income and the residency of the recipient or a relevant form issued by the competent tax authority of the country of residence.
The list and the texts of tax treaties are available on the website of the Estonian Tax and Customs Board.
Income tax is not charged on income received for the performance of official duties in Estonia by a foreign diplomatic or consular representative, a representative of a special mission or a member of a diplomatic delegation, a member of a representation of an international or intergovernmental organisation or a person employed by such representation, who is not a citizen or permanent resident of Estonia.
Persons specified in previous subsection shall be registered with the Ministry of Foreign Affairs.
If an international agreement prescribes more favourable conditions for taxation of the income of non-residents than those provided by law, the provisions of the international agreement apply.
Non-residents (natural and legal persons) have a limited tax liability in Estonia; their taxable income consists only of income from Estonian sources. Generally, there are different deductions and allowances available to non-residents than to residents.
The Estonian Income Tax Act exempts non-residents that have registered a permanent establishment in Estonia from payment of income tax on earned income, unless the income is distributed.
remuneration paid to a non-resident artist, sportsperson in connection with his or her performance or competition in Estonia.
if the person has stayed in Estonia for the purpose of employment for at least 183 days over the course of a period of 12 consecutive calendar months.
If a non-resident receiving remuneration on the basis of the law of debt, has been entered into the commercial register in Estonia or has been registered as a sole proprietor in the regional tax and customs centre of the Estonian Tax and Customs Board, and the remuneration is business income, then the corresponding remuneration shall be taxable as business income.
Income tax is not charged on income derived by a non-resident natural person from work or activities if the non-resident performed his or her duties or provided the services outside Estonia. There is no need to file tax return on income of non-resident that is not taxable in Estonia.
For example, if the Estonian employer pays wages to a non-resident long-distance driver, income tax is not withheld from the payment, as the work is done outside Estonia.
A withholding agent is required to withhold income tax on taxable payments. Income tax is withheld upon the making of a payment. Income tax withheld in accordance with the rates specified in the Estonian Income Tax Act or in foreign agreements is, for a non-resident recipient, the final income tax on income from Estonian sources.
Before withholding income tax, the unemployment insurance premium withheld on the basis of the Unemployment Insurance Act, shall be deducted from the payment made to a non-resident.
Income tax is not withheld but is paid by non-resident himself if the non-resident who receives remuneration on the basis of a contract under the law of obligations has been entered in the commercial register in Estonia or registered as a sole proprietor in another Contracting State of the European Economic Area and such remuneration is his or her business income.
Non-resident who derives such business income that is subject to taxation in Estonia is required to submit an income tax return concerning business income derived during the period of taxation.
compensation for service or employment related use of an automobile in the personal ownership of the taxpayer or used by the taxpayer on the basis of a leasing contract, paid to a public servant, an employee, or a member of the management board or a body substituting for the management board of a legal person, in accordance with the conditions and within the limits established by the Government of the Republic.
Income tax is charged on remuneration paid by a resident legal person or through or on behalf of the permanent establishment of a non-resident legal person in Estonia to a non-resident member of a management or controlling body.
Remuneration derived by a non-resident in the capacity as a member of a management or controlling body of the Estonian resident company or a permanent establishment, is taxed even if the payment is not made by the Estonian resident or through the permanent establishment in Estonia.
A management or controlling body of a legal person is any authorised body or person who, pursuant to an Act governing the legal person, a partnership agreement, the articles of association or any other legislation regulating the activities of the legal person, has the right to participate in managing the activities of the legal person or in controlling the activities of the management body of the legal person.
Management or controlling bodies include management boards, supervisory boards, partners authorised to represent general or limited partnerships, procurators, founders until registration of the legal person, liquidators, trustees in bankruptcy, auditors and internal audit committees. Directors of branches of foreign companies and managers of permanent establishments registered at service bureaus of the Tax and Customs Board are also deemed to be management bodies.
Income tax is charged on business income derived by a non-resident in Estonia if the service is provided in Estonia. If the non-resident is a legal person located in a low tax rate territory, income tax is charged on all income derived by the non-resident from the provision of services to Estonian residents, irrespective of where the services were provided or used.
A non-resident sole proprietor may additionally deduct up to 2877 euros during a period of taxation from his or her income derived from the sale of unprocessed self-produced agricultural products and from transfer of timber derived from own immovable property after all certified deductions related to business described in Income Tax Act have been made.
Business is a person's independent economic or professional activity (including the professional activity of a notary, a bailiff or, in specific cases a sworn translator), the aim of which is to derive income from production, sale or intermediation of goods, provision of services, or other activities, including creative or scientific activity.
Sole proprietors entered in the commercial register in Estonia may make the deductions, allowed under Chapter 6 of the Estonian Income Tax Act, from their business income.
the transferred timber from the immovable property situated in Estonia.
The gains or loss derived from the sale of property is the difference between the acquisition cost and the selling price of the sold property. The gains or loss derived from the exchange of property is the difference between the acquisition cost of the property subject to exchange and the market price of the property received as a result of the exchange. A taxpayer has the right to deduct certified expenses directly related to the sale or exchange of property from the taxpayer’s gain or to add such expenses to the taxpayer’s loss.
Payments upon proceeds from liquidations, payments upon capital reductions and redemption or return of participation in a company will generally be subject to corporate income tax in the hands of the payer: the Estonian company. Non-resident shareholders do not pay income tax on the amount already taxed in the hands of the Estonian company.
income from transfer of movable property in personal use.
Non-residents may not claim tax allowances available to residents prescribed by § 15 (4) of the Estonian Income Tax Act. For example, there is no tax exemption on gains from the transfer of land returned in the course of ownership reform.
Gains from transfer of property are not subject to income tax if the property has been used by the non-resident taxpayer as his or her place of residence under conditions specified in § 15 (5) and (6) of the Income Tax Act.
Non-residents who have received gain from a transfer of property have to submit an income tax return and pay income tax, because in this case income tax is not withheld upon making the payment.
the payment for industrial, commercial or scientific equipment or know-how is made by the Estonian state, a local government or a resident, or by a non-resident through or on account of its permanent establishment in Estonia.
Royalty payments between associated companies arising in Estonia are exempt from withholding tax in Estonia if the beneficial owner is a company of another EU member state or Switzerland or a permanent establishment situated in another EU member state or Switzerland. “Associated companies” are companies with a minimum direct holding of 25% within a period of the last 2 consecutive years.
Royalties are exempted from taxation only in case if the taxpayer uses the values of transactions similar to those applied by non-associated independent persons under similar conditions.
A tax treaty in many cases prescribes for lower rates of a withholding income tax. Lower rates will be applied if the withholding agent submits a document certifying the recipient of income and the residency of the recipient of income to the regional tax and customs centre of the Tax and Customs Board together with the tax return. The document needs not to be submitted if data on the recipient of income and the residency of the recipient of income have been entered in the register of taxable persons.
Income tax is generally not charged on interest received by a non-resident.
Income tax is charged on interest received from the holding in a contractual investment fund or other pool of assets of whose property, at the time of the transfer or during a period within two years before transfer, more than 50 per cent was directly or indirectly made up of immovables or structures as movables located in Estonia and in which the non-resident had a holding of at least 10 per cent at the time of transfer.
If the value of any interest received did differ from the value of similar interest paid under market conditions upon beginning of the debt instrument or upon making the payment of the interest, the interest surplus is taxable according to transfer pricing rules by corporate income tax in the hands of the payer.
Generally, no income tax is charged on dividend payment received by a non-resident.
NB! New! Since 2019, if dividends are taxable at a reduced rate 14/86 (as compare to general 20/80) in the hands of a company distributing profit and the recipient of a dividends is a natural person, income tax of 7% must be withheld from the dividend payment. Tax treaty may provide lower rate or exemption, depending on the country and if certificate of residency has been submitted to the Estonian Tax and Customs Board.
Income tax is charged on all pensions, scholarships and grants, cultural, sports and scientific awards, benefits, gambling winnings and benefits paid on the basis of the Parental Benefit Act which are paid to a non-resident by the Estonian state, a local government, a resident or through or on behalf of the permanent establishment of a non-resident legal person in Estonia. Income tax is also charged on insurance indemnities paid to a non-resident by the Estonian Health Insurance Fund, the Estonian Unemployment Fund or a resident insurance company and on payments made to a non-resident from Estonian pension funds.
Income tax is charged on remuneration paid to a non-resident artist, sportsperson in connection with his or her performance or competition in Estonia or the presentation of his or her works in Estonia. Income tax is also charged on remuneration paid to a non-resident third person in connection with the activities of a resident or non-resident artist, sportsman or sportswoman in Estonia.
Non-residents (natural and legal persons) have a limited tax liability in Estonia; they are taxed on Estonian-source income only.
gains from transfer of property if the property has been used by the non-resident taxpayer as his or her place of residence under conditions specified in § 15(5) and (6) of the Income Tax Act.
Non-residents cannot claim the same deductions and allowances as available to residents.
An withholding agent is required to withhold income tax on taxable payments. Income tax is withheld upon the making of a payment. Income tax withheld in accordance with the rates specified in the Estonian Income Tax Act or in foreign agreements is, for a non-resident recipient, the final income tax on income from Estonian sources.
The income tax is withheld by the paying entity at a rate of 20% or at a lower rate of 10% for some types of income, monthly. Since 2019, 7% of income tax is withheld from dividend payment to natural person.
An withholding agent for income tax is a resident legal person, state or local government authority, sole proprietor, employer who is a natural person, or non-resident with a permanent establishment or operating as an employer in Estonia, who makes payments subject to income tax to a natural person or non-resident.
The income tax has to be withheld on all taxable payments made and declared (on form TSD with annex 2 in case if the recipient is a non-resident natural person or on form TSD with annex 3 in case if the recipient is a non-resident legal person) and transferred to the Estonian Tax and Customs Board (income accounts of the Estonian Tax and Customs Board) by the 10th of every month, following the month of payment (i.e. tax should be withheld on payments made in January and transferred and declared to the Tax and Customs Board by February 10). The forms of income tax returns are available on website www.emta.ee or at any service bureau of the Estonian Tax and Customs Board.
It is possible to submit an income tax return through the e-service of the Estonian Tax and Customs Board.
At the request of a taxpayer, a withholding agent is required to issue a certificate to the taxpayer concerning payments made and the income tax withheld during a calendar year, broken down by types of income and tax rates, not later than by 1 February of the year following the withholding of the tax or, if the taxpayer quits employment, together with the final settlement. The format of the certificate and the procedure for completing the certificate have been established by regulation of the Minister of Finance (Forms TSM and TSM MR).
If an international agreement prescribes for lower rates for withholding income tax from a payment made to a non-resident than the rates specified in the Estonian Income Tax Act, the rates prescribed by the international agreement are applied if the withholding agent submits a document certifying the recipient of income and the residency of the recipient of income to the service bureaus the Estonian Tax and Customs Board together with the tax return on form TSD. The document need not be submitted if data on the recipient of income and the residency of the recipient of income have been entered in the register of taxable persons.
Taxation of the income of non-residents shall generally be performed by withholding income tax. A non-resident is required to submit an income tax return only in specific cases.
A non-resident who has received business income, gain from transfer of property or taxable income which is subject to taxation in Estonia on which no income tax has been withheld is required to submit an income tax return concerning this income derived during the period of taxation.
An income tax return shall be submitted to a service bureau of the Estonian Tax and Customs Board. The formats of income tax returns and annexes thereto, and the procedure for completion thereof are established by the regulation of the Minister of Finance. The forms (A1, E1 and V1) of income tax returns are available on website www.emta.ee or at any service bureau of the Estonian Tax and Customs Board.
Tax return shall be filled in in euros.
In order to obtain the reference number needed for the payment of income tax, regional tax and customs centre of the Estonian Tax and Customs Board has to be contacted.
Tax notices are not issued to non-residents.
Non-residents who have received gain from a transfer of property have to submit an income tax return on form V1 and pay income tax, because in this case income tax is not withheld upon making the payment. An income tax return shall be submitted to the Tax and Customs Centre not later than by 31 March of the following year. If a non-resident transfers an immovable, the income tax return shall be submitted within one month following the date of receiving the gain from transfer of the property. If the payment for immovable property was made by instalments, income tax return declaring the full amount of the transfer price shall be submitted within one month following the date of receiving the first instalment.
The due date for payment of income tax on gains derived from a transfer of property shall be within three months from the date of submission of income tax return.
A tax notice will not be issued to a non-resident. A non-resident shall pay amounts of tax to the bank accounts of the Estonian Tax and Customs Board. In order to obtain the reference number needed for payment of income tax, a service bureau of the Estonian Tax and Customs Board has to be contacted.
The form E1 shall be filed by a non-resident sole proprietor or a non-resident legal entity that has no permanent establishment in Estonia, with regard to their business income derived from Estonian sources. A non-resident who has not been entered into the commercial register, with regard to the relevant business income shall file the form E1.
Sole proprietors entered in the commercial register may make the deductions allowed in the Estonian Income Tax Act from their business income.
A non-resident, who derived business income subject to taxation in Estonia, shall submit an income tax return on form E1within six months following the period of taxation. If engagement in business is terminated before the end of the period of taxation, the income tax return shall be submitted within two months following the termination of activities.
A non-resident shall calculate the tax amount payable on the basis of the income tax return and shall pay this amount into the bank account of the Tax and Customs Board (income accounts of the Estonian Tax and Customs Board) within 3 months following the date of submitting the income tax return.
The Form A1 shall be submitted by a non-resident, who has received taxable income during the period of taxation pursuant to § 29 (1)(employment and service), (2) remuneration of a member of the contolling or management body, (6)(commercial lease and royalties), (7)(interest), (9)(other taxable income (pensions, scholarships and grants, cultural, sports and scientific awards, benefits, gambling winnings)) and (10)(income of artists and sportsmen) of the Income Tax Act, and on which no income tax has been withheld on the basis of § 41 of the Income Tax Act. Taxation of the income of non-residents shall generally be performed by withholding income tax (on form TSD with annex 2 in case if the recipient is a non-resident natural person or on form TSD with annex 3 in case if the recipient is a non-resident legal person).
For a non-resident recipient of the payments, the income tax withheld in accordance with the rates prescribed in § 43 (1) of the Income Tax Act or the tax treaty is the final income tax on his or her income from Estonian sources. In this case there is no need to submit tax return by the non-resident recipient.
The income tax return shall be submitted to the Tax and Customs Board by March 31 of the year following the period of taxation.
A non-resident shall calculate the tax amount payable on the basis of the income tax return and shall pay this amount into the bank account of the Estonian Tax and Customs Board (income accounts of the Estonian Tax and Customs Board) within 3 months following the date of submitting the income tax return.
Generally, non-residents may not claim for tax deductions and allowances available to residents and income tax shall be withheld from the gross amount, without permission of any deductions like basic exemption in Estonia.
You can find more information about this refund from a guide "How to get refund of income tax to non-resident natural persons in Estonia".
Permanent establishment is established as a result of geographically specified or mobile business activity in Estonia, or as a result of a business activity of a representative authorised to conclude contracts in the name of a non-resident in Estonia.
In Estonia, profit earned through a permanent establishment of a non-resident is subject to taxation, but the moment of taxation is carried forward until the moment of distribution of profit or the moment of taking the profit out of a permanent establishment.
The profit is taken out, when the assets are not under the control of a permanent establishment or a permanent establishment has not received a remuneration at a market price for its activities. If profit is not taken out before, it is regarded to be distributed at the moment of termination of activities in Estonia.
Tax rate is 20/80 of the net amount of payment. It is still the same rate of 20% as in the provisions for the taxation of salaried work payments. The difference is that 20% is applied to gross payments and 20/80 is applied to net payments.
From year 2019, a lower tax rate 14/86 applies to part of dividends paid by the Estonan resident company regularly (The profit distributed in a calendar year, which is smaller than or equal to the average distributed profit of the previous three calendar years (starting from 2018) on which a resident company has paid income tax).
(10 000 x 20/80) has to be paid by the non-resident legal person with the permanent establishment in Estonia (total cost 12 500 EUR).
In case of regular dividends paid, corporate income tax of 14/86 has to be paid instead (1627.91 EUR).
Transfer pricing provisions may be implemented in taxation of distributed profit of non-residents derived through a permanent establishment in Estonia.
If tax treaty prescribes for more favourable conditions for the taxation of the income of non-residents than those provided by the Income Tax Act, the provisions of the international agreement apply.
loan as a hidden profit distribution.
Taxable profit taken out of permanent establishment and loans as profit hidden distributions shall be declared in Annex 3 of form TSD. There is no need to submit form INF 1 concerning the amount and the recipients of payments made during the period of taxation.
Taxable fringe benefits shall be declared in Annex 4 of form TSD.
Gifts, donations and costs of entertaining guests in Annex 5 of form TSD.
Expenses not relates to business shall be declared in Annex 6 of form TSD.
dividends received from a company resident in a country which do not appear in the preceding paragraph (but not located in a low tax territory) and which dividend have been taxable or when underlying profit out of which dividends were paid has been taxable.
There is a tax exemption available also where a non-resident company receives through its permanent establishment in Estonia a shareholder gain upon a reduction in a share capital or contributions, a payment upon redemption of shares or liquidation of a legal person from another company (except for a company located within a low tax rate territory) and at the time of deriving the gain, the receiving company owned at least 10% of the shares or votes of such another company, and income tax has been withheld from the payment or income tax has been charged on the profit which is the basis for the taxable payment in Estonia.
The tax exemption is given proportionally according to the taxable part of the received payment.
Only the income tax subject to payment pursuant to law or an international agreement shall be taken into account upon tax exemptions.
The moment of declaration of such income received which distribution is exempted from income tax in Estonia, shall be declared at the moment of reciept, not of distribution, in Annex 3 of form TSD.
A non-resident legal person with a permanent establishment in Estonia is required to submit a tax return on profit distributions and received double taxed income on form TSD Annex 3. Non-resident legal persons are required to submit a tax return on form TSD with annexes 3 to 6 regarding the expenses and payments, concerning the previous calendar month by the 10th day of the calendar month following the period of taxation.
Non-resident with a permanent establishment operating as an employer in Estonia is a withholding agent for income tax purposes and has to pay social security taxes on behalf of employees.
An withholding agent payer of a taxable income of the recipient is required to submit a tax return on form TSD with Annex 1 (resident recipient) or Annex 2 (non-resident recipient) to the Estonian Tax and Customs Board by the 10th day of the month following the month during which the payment was made.
Foreign legal persons who are commencing economic activities in Estonia through a permanent establishment, which is not entered in the commercial register as a branch are required to register themselves in service bureaus prior to the commencement of activities: Estonian Tax and Customs Board, Lõõtsa Street 8a, Tallinn, e-mail emta@emta.ee, phone (+372) 676 0810.
5) the signature of the employer or a person authorised by the non-resident.
A copy of the articles of association or another document regulating the activities of the non-resident employer shall be attached to the application if available.
A document certifying the authorisation of the person representing the employer and a specimen signature of the person, which is notarised or officially certified by a tax authority shall also be submitted.
If a permanent establishmet is already registered, there is no need to register the same person as a non-resident employer in addition.
Information about the termination of activities, liquidation of the permanent establishment and changes in other register information regarding person registered as a permanent establishment, shall be given to the tax administration (form R4).
Foreign associations of persons or pools of assets without the status of a legal person which are commencing economic activities in Estonia through a permanent establishment which is not entered in the commercial register as a branch are required to register themselves in the regional tax and customs centre prior to the commencement of activities.
Taxation of the income of employees shall generally be performed by withholding income tax. Non-resident employers, which are not subject to the registration requirement arising from the Estonian Taxation Act or other Estonian legal acts, are registered in the register of taxable persons as employers in order to be able to fulfil tax obligations. A withholding agent for income tax is a non-resident with a permanent establishment or operating as an employer in Estonia, who makes payments subject to income tax to a natural person or non-resident.
A non-resident who operates as an employer in Estonia but does not have a permanent establishment in Estonia is required to withhold income tax only on salaries, wages and other remuneration subject to income tax paid to a resident natural person or to a non-resident, and remuneration paid to resident and non-resident members of the management and controlling bodies of a legal person, taking into account the deductions allowed to residents under the Estonian Income Tax Act.
Income tax on fringe benefits granted to a natural person is paid by employers who are non-residents having a permanent establishment or operating as employers in Estonia who grant taxable fringe benefits.
A withholding agent is required to submit a tax return on form TSD with annexes 1 or 2 to the service bureau of the Estonian Tax and Customs Board by the 10th day of the month following the month during which the payment was made and is required to transfer withheld income tax to a bank account of the Estonian Tax and Customs Board (income Accounts of the Estonian Tax and Customs Board).
Employers pay income and social tax on granted fringe benefits in full. A person who grants taxable fringe benefits is required to submit a tax return on form TSD with annex 4 to a regional tax and customs centre of the Tax and Customs Board by the 10th day of the calendar month following the period of taxation.
The social tax is paid at a rate of 33% on all payments made to employees for salaried work performed. Employers pay the social tax in full. Pursuant to the Estonian Social Tax Act, social tax shall be paid on wages and other remuneration paid to employees, on remuneration paid to members of management and controlling bodies of legal persons, on fringe benefits and on income tax calculated on fringe benefits.
An unemployment insurance premium is withheld at a rate of 1,6% of the gross salary of the employee.
Pensioners are not entitled to unemployment status benefits and therefore they do not pay the unemployment insurance premium. In addition to this, employers pay the unemployment insurance premium at a rate of 0,8% of the sum of gross salaries monthly.
supplementary funded pension specified in § 21 of the Estonian Income Tax Act.
For a non-resident recipient of the payments, the income tax withheld in accordance with the rates prescribed in § 43 (1) of the Income Tax Act or the tax treaty is the final income tax on his or her income from Estonian sources.
If an international agreement (for example, tax treaty) prescribes lower rates for withholding income tax from a payment made to a non-resident than the rates specified in the Estonian income Tax Act, the rates prescribed by the international agreement are applied.
In Estonia the tax incentives or exemptions arising from tax treaties can be applied only if the recipient of the payment has certified his residence status to the tax authority. Please note that residency should be certified for the purpose and in the sense of the relevant tax treaty and not in the sense of the national law of a foreign country. The document need not be submitted if data on the recipient of income and the residency of the recipient of income have been entered in the register of taxable persons. Form TM3 (547.39 KB, PDF) available on the website of the Estonian Tax and Customs Board www.emta.ee can be used for certifying the recipient of income and the residency of the recipient or a relevant form issued by the competent tax authority of the country of residence.
The rate of income tax on fringe benefits granted to a natural person and the rate of income tax imposed on gifts, donations and costs of entertaining guests, distributed profit, and expenses and payments not related to business, made by a resident legal person is 20/80 of the taxable amount.
This guideline is to be considered as informative and should not be treated as a final law. In specific cases one must act according to law. In case of questions, you are welcome to contact the Estonian Tax and Customs Board.

References: § 15
 § 15
 § 15
 § 15
 § 29
 § 41
 § 43
 § 21
 § 43