Law Changes 2023

Minimum wage

From 01.01.2023, the minimum wage increases to EUR 725 per month (EUR 654 in 2022).

Tax-free income threshold

From 01.01.2023, the general tax-free income threshold increases to EUR 654 per month (it was EUR 500 from 2018-2022).

Social tax minimum

The social tax minimum in 2023 is EUR 215.82.

Payroll taxes

No changes in payroll taxes in 2023. Withholdings remain 1.6% employee unemployment insurance, 2% funded pension, and 20% income tax.

Donations to Ukraine tax-exempt

Resident legal entities do not pay income tax on donations made for preserving Ukraine's territorial integrity and sovereignty to the following legal entities:

  • NGO Estonian Refugee Council;
  • NGO Mondo;
  • Ukrainian Cultural Center;
  • National Defence Development Foundation;
  • Estonian Red Cross;
  • Rescue Union;
  • Rotary Club Tallinn Old Town.

Mandatory supply chain and construction site time tracking

The Taxation Act is amended from 01.10.2023. More details available at: https://www.riigiteataja.ee/akt/109082022009

Company name reservation in e-Business Register

A legal or natural person can reserve a company name in the business register for 6 months by paying a state fee of EUR 150. Name reservation is actually available from 01.03.2024.

Sick leave returns to pre-COVID rules

From 01.07.2023, sick leave compensation rules change again: days 1-3 are the employee's responsibility, the next 5 days (days 4-8) are compensated at 70% by the employer, and from day 9 by the Health Insurance Fund.

Fines for failure to submit annual reports

From 01.02.2023, the registrar can impose fines without warning and repeatedly until the annual report is submitted.

  • how many times the annual report has been submitted late;
  • how long has passed since the annual report deadline;
  • other relevant circumstances known to the registrar.

Fines are set at no less than EUR 200, up to EUR 3,200.

Submitting annual reports without management board or shareholders

If there is a dispute between shareholders and the report cannot be approved on time, the management board can submit it without shareholder approval.

Company restoration

If a company has been deleted from the register for failure to submit an annual report, it can be restored. No more than 3 years can pass between deletion and restoration.

Digital platform reporting obligation

Digital platform operators must report information about sellers of goods and services. Data must be collected on:

  • sale of goods (physical items only);
  • real estate rental;
  • provision of personal services;
  • any type of transport rental.

The first report deadline is 31.01.2024.