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Estonia to Introduce Maximum Basis Cap for Social Tax

01 November 2016

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Proposed Changes

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Estonia

Proposed legislation that would amend the Law on Social Tax to introduce a maximum basis cap is currently before The Estonian parliament. The proposed basis cap would be equal to 4.5 times the average salary as determined by the tax authorities. The current rate of social tax payable by employers is 33% on gross salary. The rate is scheduled to be reduced to 32.5% in 2017 and to 32% in 2018.