Thanks for this informative guide!
I’m trying to put my head around the taxes again using some examples.
Please correct if I’m wrong in any part.
From what I understand so far, as non-resident Estonian company owner:
- You don’t pay any corporate taxes (20%) until you distribute the money. Awesome.
- Following other posts - you don’t obligated to pay board member salary to yourself and thus pay almost 40% taxes for this salary. Worst case you pay a really low salary. Awesome.
- Really depends on your situation, but in general you can “drain” the money by paying yourself a regular employee salary and pay taxes only in your country of residence for personal income. Awesome.
So far so good?
The only part I’m missing is regarding #3 - you as employee shouldn’t pay taxes to Estonia but your home country. However, should you-as-company pay extra taxes for this paid salary? As a company, paying for your employee a salary carry any additional expense? If so, how much? and what is the lowest salary you can pay to yourself to avoid that?