Remuneration of the management board in Estonia
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/she has social security insurance can prove that he/she is covered under that country's 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
1 000 EUR
0 EUR
1 000 EUR
200 EUR
0 EUR
800 EUR (1 000 – 200)
200 EUR
1 000 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
1 000 EUR
0 EUR
1 000 EUR
200 EUR
330 EUR
800 EUR (1 000 – 200)
530 EUR (200 + 330)
1 330 EUR (1 000 + 330)
From the total cost 1 330 EUR - 60% (800) is received by the employee and 40% (533 EUR) is paid in taxes.