Remuneration of the management board


Remuneration payable to a member of the management board with A1/E101

 

With an A1/E101 certificate, a person who works outside the country where he has social security insurance can prove that he or she is covered under that country social insurance legislation for e.g. old age pension, child benefit and unemployment. All European Union countries use A1/E101 certificates. To avoid paying social security tax in Estonia you must present your A1/E101 certificate to Estonian tax authorities.

 

Gross salary

Tax exempt income

Taxable income

Income tax 20%

Social security tax to be paid in Estonia

Employee to receive

Total taxes

Total cost for the employer

1000 EUR

0 EUR

1000 EUR

200 EUR

 0 EUR

800 EUR (1000 – 200)

200 EUR

1000 EUR


Board member's salary to resident or person without A1

Gross salary

Tax exempt income

Taxable income

Income tax 20%

Social security tax 33%

Employee to receive

Total taxes

Total cost for the employer

1000 EUR

0 EUR

1000 EUR

200 EUR

330 EUR

800 EUR (1000 – 200)

530 EUR (200 + 330)

1330 EUR (1000 + 330)


From total cost 1330 - 60% (800) is received by the employee and 40% (533) is paid in taxes.