The tax system in Estonia consists of state taxes provided for in and imposed by Acts concerning taxes and local taxes imposed by a rural municipality or city council in its administrative territory pursuant to law.
The system of corporate earnings taxation in force currently in Estonia is a unique system, which shifts the moment of corporate taxation from the moment of earning the profits to the moment of their distribution.
Value-added tax, known as VAT, is levied on goods and services sold in the course of business, import of goods from non-EU countries and acquisition of goods from European Union countries. Value-added tax is paid by the end consumer.
Income tax is charged on income derived by a resident natural person during a period of taxation from all sources of income in Estonia and outside Estonia.