Employ Candidates Compliantly in Estonia

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  1. Overview: Estonia
  2. Global HR Compliance
  3. Global PEO and payroll
  4. Work permit for hiring expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
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Global PEO and Payroll in Estonia

Getting your business up-and-running in Estonia can be challenging, especially if you do not speak the native language. Establishing your own business entity in Estonia is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in Estonia, you should be fully aware of the risks involved.

Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in Estonia, without having to establish a legal business entity.

Acumen International – Your Professional Employer Organization in Estonia

Navigating the Estonian legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Estonian speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in Estonia without concern for legal and compliance risks.

Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in Estonia. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.

International Global Payroll and Taxation in Estonia

Employment related taxes

All undistributed corporate profits are tax exempt. This exemption covers both active (e.g. trading) and passive (e.g. dividends, interest, royalties) types of income. It also covers capital gains from the sale of all types of assets, including shares, securities, and immovable property. This tax regime is available to Estonian resident companies and permanent establishments (PEs) of non-resident companies that are registered in Estonia.

Social security contributions. Employers operating in Estonia (including non-residents having a permanent establishment [PE] or employees in Estonia) must pay social tax on certain payments to individuals. Social tax paid by employers is not capped and mainly applies to salaries, directors’ fees, and service fees paid and fringe benefits granted to individuals. The period of taxation is a calendar month.

In addition to social tax, employers are also required to pay and withhold unemployment insurance contributions. The contributions mainly apply to salaries and service fees paid to individuals.

The net business income derived by individuals registered as sole proprietorships is also subject to social tax (capped). Sole proprietorships are required to make quarterly advance payments of social tax in fixed amounts, which are credited against the final annual social tax liability.

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How Acumen’s International PEO and Payroll Service can Benefit Your Business in Estonia

Compensating your local and expat workforce in Estonia and closely adhering to Estonian taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.

Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Estonian labor and taxation laws.

It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.

Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in Estonia by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.

Disclaimer: Any of the above information is subject to changes imposed by Estonian laws. To get the latest updates on taxation in Estonia and in 190 countries worldwide, contact Acumen’s team of global employment experts.

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